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Easy Tips To Ensure Your Loan Doesn’t Get Declined

Easy Tips To Ensure Your Loan Doesn’t Get Declined | Financial Information | Tiger Finance

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When you’re applying for a loan, it’s easy for your application to be declined by a lender. That’s why we’ve put together this guide full of easy tips to ensure your loan doesn’t get declined. The most important factors when it comes to getting your loan approved stem from your credit score, and your income. However, there are a few more important things to be aware of too.

Read on below to find out everything you need to know about ensuring your loan doesn’t get declined.

Man applying for a loan over the phone | Financial Information | Tiger Finance

Why can your loan get declined?

  • Your credit score – Your credit score is one of the biggest factors that lenders take into account when looking at any credit application you make, so it is important to make sure all of the information that factors into your credit score is up to date. Your credit score is calculated by using the information listed in your credit report, such as your financial history, your repayment history, and how many times you have applied for credit. Having a bad credit score may make some more traditional lenders reluctant to approve your loan, or only give you access to a loan with a higher interest rate and bad loan terms.
  •  Your financial history – If you have a history of defaulting on loans or missing repayments, you might struggle to get a loan application approved. When considering an application, lenders can access your credit file, which may list financial information such as this. Lenders need to be sure that you will be able to make your repayments on time, and that they won’t need to chase you for overdue fees. If your financial history is a negative one, you might struggle when it comes to getting a new loan.
  • You have a history of defaults – Defaults and certain court judgements may harm your credit score so it’s best to try and limit them from happening by staying on top of your repayments. If you have multiple judgements on your file, you might find yourself being denied funding.
  • You don’t have enough income, or have irregular employment – Lenders like to see that you have regular employment and that you make enough to cover your loan repayments after your other expenses. If you have an irregular work history, or you don’t make enough for a lender to be sure that you will make your repayments, your funding application could get declined.
  • Incorrect information on your credit report – Regularly checking your credit reports and credit scores is essential in ensuring your personal and account information is correct. When monitoring your credit report, it’s important to make sure all your personal information is accurate, and there isn’t information listed that is unfamiliar to you. You should recognise all of the credit histories, payment histories and loan information. If you don’t recognise a piece of information, or there are changes to your credit report that you don’t think is right, there may be an error on your credit report. Incorrect information on your credit file could affect your credit score and may affect your ability to be approved for a loan in the future.
  • You cannot provide the necessary documentation – When you apply for a loan, you will often need to provide your lender with documentation proving your identity and financial status. Depending on the type of loan that you are applying for, your lender may need other types of documentation too, such as a building plan if you are applying for a construction loan, or a business plan if you are applying for a business loan. However, you might find it difficult to supply your lender with everything they need. If this is the case, and you can’t supply your identification and income documents, a lender may decline your loan, or defer your application until you can.
  • You’ve made repeated applications for credit – Applying for too many forms of credit in a short space of time can harm your credit score by creating too many hard inquiries. Hard inquiries may remain on your credit report for two years. It may not matter what type of credit you apply for, or how much you’re asking to borrow. Try to space out credit applications to when you really need them.
Woman learning some easy tips to help her loan | Financial Information | Tiger Finance

How can I make sure this doesn't happen to me?

  • Checking your credit report for mistakes – Checking will ensure that the information listed about you and your financial history is correct.
  • Paying off some of your debts – The less debt that you have in your name when you apply for a loan, the better. Lenders will see that you have managed to pay off your debt, and take that as a sign that you can continue to do so if they approve your new loan.
  • Ensure your application is complete and correct – It may sound obvious, but making sure that your application is filled out with the correct information and documents is the first step to being approved for a loan. The less a lender has to chase you for information and documents, the better.
  • Create a budget to ensure you can meet repayments – Before you complete your application, making a budget of your income and expenses and seeing how much you can afford to repay might help you. That way, you won’t be caught out each time your repayment comes around.
  • Only apply for credit when you need it – Applying for different forms of credit creates a hard enquiry which lowers your credit score. Every time a lender has to review your credit file, a hard enquiry is triggered. Too many of these, and you will see your credit score drop. So, only applying for credit when absolutely necessary should keep your credit score in the same range.


  • Be honest and upfront about your financial situation and expenses – Being honest with your lender from the beginning about your expenses will help them to find you the right loan, with a manageable repayment for you. You don’t want to be paying too much a month, so being honest and upfront about your budget is important.
Couple settled into their loan | Financial Information | Tiger Finance

How Can Tiger Finance help?

We can help by getting you approved for a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

We have helped countless Australians with both good and bad credit ratings get approved for funding. If you are one of the many Australians finding getting a loan difficult, Tiger Finance can make the process simple and pain-free. Call today to speak to one of our loan specialists for your free initial consultation.

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