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Been declined a loan? What should you do next?

You’ve applied for a loan but been declined, the question is now – should you keep applying for a loan?

The answer: This depends on who you applied with. If you applied with a direct lender, your application has only been seen by one lender. However, free brokers like My Quick Loan, show your application to multiple lenders which does increase your chances of getting a loan.

Applying multiple times for a payday loan may decrease your chance of getting accepted for a loan. Make sure you pick the right lender or broker. If you’ve been declined by multiple direct lenders and brokers and our desperate for money, seek financial advice from a debt charity.

If you have high debt levels (usually £2,000 or more) and are using loans to pay off previous loans or struggling to pay other creditors a debt solution may be your best option.

Lenders use multiple factors when deciding if they will grant you the loan:

  • They look at affordability, this tells them how much disposable income you have and helps them to decide if you can afford to repay the loan.
  • Credit score – obviously they will carry out a credit check to ensure you haven’t been missing payments etc.
  • Outstanding loans – if you already have multiple loans, this will decrease the chance of being accepted for another loan.

Being declined for a loan can be frustrating, but it’s important not to panic. Here are some steps you can take if you’ve been declined for a loan in the UK:

  1. Find out why you were declined: You can contact the lender who declined your loan application and ask for an explanation. This will help you understand why your application was unsuccessful, and it may help you identify ways to improve your creditworthiness in the future.
  2. Check your credit report: Your credit report is a record of your credit history, and it’s used by lenders to assess your creditworthiness. You can check your credit report for free with any of the three major credit reference agencies in the UK: Experian, Equifax, and TransUnion. Make sure your report is accurate, and if you find any errors, report them to the credit reference agency and the lender that declined your loan.
  3. Improve your credit score: If your credit score is low, you may need to take steps to improve it before applying for another loan. This could include paying off any outstanding debts, making sure you’re on the electoral roll, and avoiding applying for credit too frequently.
  4. Consider alternative options: If you’re unable to get a short term loan from a traditional lender, there are other options to consider, such as credit unions, peer-to-peer lending, or guarantor loans. These options may have higher interest rates or stricter terms, but they could be a way to access the credit you need.
  5. Seek advice: If you’re struggling with debt or financial difficulties, it’s important to seek advice from a debt charity or a financial advisor. They can help you understand your options and provide guidance on how to manage your finances.

Remember, being declined for a loan is not the end of the world. There are steps you can take to improve your creditworthiness and access the credit you need in the future.


Warning: Late repayment of payday loans can cause you serious money problems. For help, go to