As a responsible lender, we take loan application assessments very seriously to ensure your timely loan repayments do not cause excessive hardships, and therefore risk defaulting repayment (and making your credit history worse).
We receive over a hundred applications each week from across the UK for many different requirements/circumstances. Each application we receive is assessed on an individual basis on its merit.
Our belief is to give another chance to people who have had a difficult past with debt. Poor debt history affects your credit score and potentially excludes you from the most conventional borrowing options. We can give you a second chance to sort out your debt and money situation.
However, as a responsible lender, we take loan application assessments very seriously to ensure your timely loan repayments do not cause excessive hardships, and therefore risk defaulting repayment (and making your credit history worse).
We asked our account managers, who carry out these assessments, the common reasons why applications are refused. This post will help you understand your suitability/eligibility for our guarantor loan products and hopefully provide input into making a strong loan application.
Top reasons why loan applications are refused:
1. Not having a guarantor: we are a guarantor loan specialist lender and all our loans will require the borrower to have an eligible guarantor to support the application. Your guarantor must also meet specific eligibility requirements for your application to be successful.
You can learn more about your guarantor’s eligibility requirements here.
2. Affordability Assessment clearance: All applications are assessed on an individual basis because each applicant will have a different background and personal circumstances. Your account manager will seek to establish whether you are able to afford repayments without the risk of default. For example, despite your stable income each month, will you be left with enough disposable income after paying for everyday costs such as household bills, groceries, transportation costs etc. to make your loan repayments?
To understand our assessment process, read our previous post on how we assess your ability to repay the loan.
3. Credit history: we believe in giving you a second chance if you don’t have an impeccable credit score. However, your account manager will look into past debt arrangements and defaults on loan repayments. Your account manager will patiently listen to your reasons and circumstances leading to what may appear a very complicated credit history. Each application is assessed individually and not according to a checklist. Your account manager will rely on their years of experience assessing the credit history of applicants and regular training in unbiased assessments.
4. Not a well-balanced application: We will assess the credit history and ability to afford repayments for both the applicant and guarantor. It is important for the Guarantor to meet a strong assessment score if the applicant doesn’t and vice-versa. We look for a good balance where both the applicant and guarantor can afford timely repayments without risking excessive hardships. While choosing your guarantor, it is important to keep this factor in mind. Relative to your situation, how strong is your guarantor’s position to support your application?
5. Fraud or dishonesty: unfortunately we receive applications where we detect fraud, dishonesty or wilful concealment of facts. In such cases we maintain our policy to refuse an application outright. In our experience we have found that an applicant stands a much better chance of approval when they are completely honest about their circumstances. Your account manager will use several fraud detection techniques to ensure only an honest applicant is approved.
© 2015 Match the Cash Ltd trading as
Guarantormyloan.co.uk. We are authorised and regulated by the Financial Conduct Authority. Interim Licence 661304
Registered in England as Match The Cash Ltd. Registration Number: ZA055459 (ICO)
Registered Office: MATCH THE CASH LIMITED ACRE HOUSE, 11/15 WILLIAM ROAD, LONDON, UNITED KINGDOM, NW1 3ER. Company No. 08667447