Don’t Take It Personally: Improving Your Chances of Being Approved for a Loan

No matter the need to borrow, or the individuals financial situation, we will always carefully consider an application. However, this does not mean we can always say yes...

As a credit union, we work hard to accept all loan applications. A member of our team will take the time to carefully consider the application with the intention of offering the best loan we can. However, sometimes it may not be right for us, or in your best interests, for us to approve your loan application.

Why Might my Application be Rejected?

There is a range of reasons why we may not approve a loan, and factors that we take into account when reaching a decision. Every situation is different, so the following are just some of the most common reasons.


The most important factor that we consider is affordability. We have to take your income and outgoings into consideration. This is so we can decide if we think you’ll be able to afford the loan repayments. If the monthly repayments are larger than the amount you have available each month, or if it looks like you may struggle, we are unlikely to be able to offer you the full amount you have asked for.

Borrowing History

Another thing we have to check before considering a loan application is your credit history. We do not expect a perfect credit history and past CCJs (County Court Judgments) are not necessarily deal-breakers. However, we will ask for some details of the case in order to better understand why this happened.

Risky Financial Behaviour

Some applicants have a good income and credit history, but a history of risky financial behaviour. Habits like heavy gambling can affect your financial well-being and may call into question if you will be able to repay the loan.

More often than not, if we see evidence that gambling or substance addiction might be an issue for you, we may need to turn down your application. If this is the case, giving you a loan may not be in your best interests. If we do this, you can expect us to treat you with the utmost confidentiality and respect. We will also be able to discretely recommend other sources of advice and support.

Not Yet Paying Off Enough of a Previous Loan

One of our most common reasons for saying no to a loan application is the 1/3rd rule. Put simply, we cannot give a new loan to a member if they already have a loan with us that has over two-thirds left to pay. This rule has been put in place not just for the credit union’s benefit but also to make sure you are managing your repayments. It may not always be in your best interests to take out another loan or have additional repayment charges on your account.

How Do I Improve My Chances?

Every loan application is as individual as our members. We cannot guarantee that every loan will be accepted, but we can offer some tips to get you going in the right direction…


Before you apply for a loan, make sure to check your income and outgoings so you know if you can afford the repayments or not. You can do this by using our loan calculator.

We are only able to take into account your current income/salary. If you know you are due a promotion or pay rise, please wait until after you have received your first month’s salary in the new role, so that we are able to take this into account.

Acing the Credit Check

Be sure to provide a full address history when applying for a loan. Also, declare any CCJs when asked to provide details of them. This will avoid delays in processing the loan application.

One Third Rule

If you already have a loan with us, you can get a speedy response by text to see if you are eligible to top-up. To do this, text CANITOPUP to 80011.

Financial Behaviour

Take into consideration your current financial behavior. If you are struggling with gambling, alcohol, or other addictions, then taking out a loan is unlikely to be in your best interests. If this is the case, we would be happy to help you look for alternative sources of support or advice.

As a Credit Union, our main goal is to work with our members to support their financial well-being. We cannot always promise the outcome you wanted, but will often be able to offer a lesser loan amount or an alternative solution that will better your chances in the future.

Holly Hunt

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