Did the bank reject your loan application? In all cases, a loan rejection does not have to mean the end of every loan request. A loan is never rejected for no reason. But it is not uncommon for the causes of the reserved behavior of the credit bank to be eliminated. seagig.org has more information

The refusal of online loans, in particular, can have banal reasons. Simple transmission errors or processing errors can lead to the direct bank refusing to grant loans. On the other hand, a loan refusal can be a serious warning sign. This is the case if the applicant simply cannot cope with further financial burdens.

Either the pre-obligations are too high or the stated income is simply not sufficient to repay the loan.

Settling loans with new loans is a common mistake

Settling loans with new loans is a common mistake

As a result, consumers only fall deeper into the debt trap.

If the costs of existing loans can no longer be met, debt counseling is the right solution, but not a new loan.


  1. Banks do not have to justify a loan refusal. However, do not be satisfied if a bank does not give any reasons at all or makes a general reference to Credit Checker and the score. Ask and try to find out more about the reasons for the rejection. You can then better assess whether the causes can be eliminated or not.
  2. If you know the reasons for the loan refusal, try to eliminate the reasons before you make new loan applications to other banks.
  3. Wait for a certain time, but at least ten days, before applying again to other banks. Otherwise, the new bank may find out about the credit request previously made through Credit Checker information.
  4. Think carefully about whether you can actually afford the loan you want. Consider reducing the loan amount and / or extending the term.
  5. After a loan request has been rejected, it can make sense to seek professional advice before making another application to another bank. For example, reputable credit intermediaries can quickly find out why their first application failed. This way you can find out, free of charge and without obligation, whether and with which bank a new loan application is promising.

Reasons for a loan refusal

Why is a loan declined?

There are a few so-called “knockout criteria” that make it impossible for many banks to borrow. Some of them definitely lead to loan rejection at all banks.

Others may be overcome with a renewed loan application from another bank.

Lack of economic performance

If the monthly income remains below the attachable amount, consumers will not find a bank that is ready to lend.

Even loans without Credit Checker from banks in Liechtenstein or Switzerland are not granted. The same applies if prior obligations restrict the financial scope for action too much.

However, the attachable amount is not the only criterion that can lead to the rejection of a loan application due to a lack of economic creditworthiness.

The lending guidelines of the individual banks contain rules as to which flat rates can be applied to the cost of housekeeping.

Such flat rates can vary from bank to bank. Therefore, a loan application to another bank can be successful in individual cases, especially if the loan amount and term are adjusted if necessary.

Ongoing payment difficulties

Banks identify payment difficulties by querying credit agencies (mostly Credit Checker or Infoscore) and evaluating account statements.

Hard data such as bankruptcy, arrest warrant or affidavit always lead to a loan refusal.

No Credit Checker-free loans are granted.

The same applies to titled or uncollectible claims and ongoing enforcement proceedings. In all these cases, new loan applications are unsuccessful. The same applies to suspected fraud or termination of accounts.

Return debits and ongoing overdrafts

If it is determined from bank statements that the applicant is permanently operating at the overdraft limit, many banks no longer grant loans. The same applies if the submitted bank statements show return debits.

Before a new loan application with the prospect of success can be made, overdraft facilities should be shut down and the causes of return debits eliminated.

Another loan application can be made to another bank, for example, if the bank statements of the past two months have no longer shown any direct debits.

Negative Credit Checker entries

Negative Credit Checker entries

If the Credit Checker problems are not solved, a loan rejection is certain. In such cases, only an expensive loan without Credit Checker remains, unless there are hard Credit Checker entries.

If the negative Credit Checker entries have been completed, but the deletion period (storage period) has not yet expired, some banks make an exception.

Reputable credit intermediaries (no upfront costs) have contact with banks, for example, that overlook neglected or minor negative features in individual cases.

Consumers can have negative Credit Checker entries deleted immediately if there are outstanding amounts up to $ 2,000. The prerequisite is that the creditor is reported as settled within six weeks.

If this opportunity is taken and the amount is paid within the six-week period, the negative feature ceases to exist and applicants no longer have to fear rejection due to a negative Credit Checker entry when making a new loan request.