• Your credit score is calculated based on your credit profile, and your credit score tells a credit provider how likely you are to be able to pay back the loan.
  • If your loan applications keep getting rejected, it could be due to a low credit score.
  • Sometimes unlikely factors can have an impact on your credit score, and subsequently on whether or not your loan applications will be approved.


Can't get a loan and keep having your credit applications rejected?

Whether or not a credit provider will grant your application is based on how high or low your credit score is. Paying back the loans that you already have is one way to increase your credit score, there are many unlikely things that can have an impact.

Here are some of the lesser-known factors out there that can impact your credit score.

Do You Have Any Credit?

If you don't have any credit, you have a clear record – and that's not always a good thing. When credit providers consider your larger credit profile, they look at the credit you have already paid back.

This means that you need to have made credit in some form or another to start building up a credit score at all.

Store accounts used responsibly is one way to increase your credit score.

The Amount of Loan Applications

Credit providers can see the number of times that you have tried to apply for credit and had your applications rejected.

If you have applied for a lot of unsuccessful credit applications in a short time, credit providers will consider this a negative mark on your credit score and your rating automatically goes down.

To avoid this, don't make a bunch of loan applications in a short time period.

Currently Active Loans

A credit profile also consists of any loans that you currently have active.

If you have an outstanding loan or payment with another credit provider, it can contribute to the reason why your current loan applications are being rejected.

Credit providers can see at a glance when you're spreading your finances too thinly, and they will be less likely to provide you with a subsequent loan on top of this as a result.

To improve your credit score from here, settle any other outstanding payments or loans first.

Life and Credit Insurance

Any credit provider looks at your record for signs of financial responsibility. The more responsible you are able to conduct your finances on paper, the more likely lenders are to consider you eligible for credit.

One of the first signs of “financial responsibility” other than your ability to pay back your loans is whether or not you are insured.

Ideally, you should have life, credit and vehicle insurance in place before approaching any loan provider.

Marital Affairs

If you're married outside community of property, each person in the marriage takes responsibility for their own credit score and assets. But inside community of property (and usually without a prenuptial agreement) can mean that your credit scores are combined.

While this can have its benefits, it can have a negative impact on your credit score if your partner is the one taking out loans affecting you both.

Where couples combine their financial situations, assets and credit scores, regular open financial discussions are vital to long-term financial success.

If you aren't sure where you currently stand, have your credit score assessed.

The Reason for Your Loan

Many loan providers will have a section of their website where they ask what the reason for your loan is – and depending on what you select, it could get your application rejected. If you're taking out regular loans for unnecessary reasons, this can be another factor viewed by credit providers as potentially irresponsible financial behavior.

Wrong Information on Your Application

Make sure that the information on your loan application is filled incorrectly. Information such as your expense estimates (how much you spend every month or week on things like rent, food, and electricity) has a direct impact on whether the credit provider will grant the loan or not. If your information doesn't match up with your submitted documents, that's an instant rejection.

Double-check all information and take a look at your recent bank statements to calculate the information needed if you want to make sure.

Alex J. Coyne

Alex J. Coyne is a writer, journalist and card player. He's been published in international publications including Moneyweb, CollegeHumor, Funds for Writers, Great Bridge Links, Bridge Canada Magazine and a variety of others