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Tel: 01604 250016 Email:

19 August 2017
Refused a loan?

Here at Northamptonshire Credit Union, we understand how distressing it can be to be turned down for a loan and we want to make sure that you have all the support you need so that next time we can say yes. This article will hopefully help you understand why you were turned down and what you can do next.

What were the reasons?

When you apply for a loan, we will check your credit report using Experian. If you have been turned down for a loan it is likely to be for one or more of the following reasons:

  • You already owe a lot of money to other lenders.
  • You have a low credit score or no credit history.
  • You cannot afford to borrow the amount asked for.
  • You are not taking steps to repay existing bad debts.

What to do next?

1. Do not keep applying. Several applications in a short space of time may make lenders think you are desperate for cash and this will affect your credit history further.

2. Try saving a little. If you can show us that you can pay the loan repayment amount as savings instead, you will be able to prove that you can afford the repayments when you are next eligible to apply (3-6 months).

3. Try our budget account. If you are often late with paying your bills or have an outstanding un-paid debt, a NCU Budget Plus account can help you put aside and safeguard money for your bills and debts. Paying on time will help repair your credit history.

4. Get help. If you are financially over stretched, getting a loan might not be the best course of action as it will add to the pressure. You may need to see someone who can help you sort through your finances. There are a number of free debt advice services you can use, try the Money Health Check tool as a starting point. We also work in partnership with the Citizen Advice Bureau, you can contact the central and east Northamptonshire branch on 0344 488 9629.

5. Get clued up. There is a lot of tools, advice and help out there for anyone struggling with money. Try the Money Advice Service, this page is a good place to start.


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Northamptonshire Credit Union Tel: 01604 250016 Email: Web:
Northamptonshire Credit Union is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority (FRN 213810)