Why can’t I borrow money? On refusal of loan application

If you have been rejected in the bank, it is natural to ask yourself the question: Why can’t I borrow money? A rejection can have many causes, so it is impossible to give a concrete answer.

The closest we come to that is that your personal finances are not strong enough. But only the bank knows how much weight your income, age, existing debt etc. have had on their decision.

Online, the opportunities are different and many. So here you have good chances of getting approved for a loan.

Reasons for refusing loan application

Reasons for refusing loan application

There can be many reasons why you may refuse your loan application, whether it is at the bank or at online loan companies. We fully understand that it is really frustrating and if you know the cause it can help to relate to it.


The most frequent reason is if you are registered in Good Finance. It is a register for bad payers; Danes who have not paid their bills on time. If you are in RKI, your loan options are non-existent and your focus should therefore be on getting your current debt settled.

You start by doing this by contacting the various creditors and making an appointment with them. Borrowing new consumer loans is certainly not the solution and, moreover, not possible.

Insufficient income

Insufficient income

Another well-known cause is inadequate income. It is to a large extent the income that must help pay the monthly installments. The smaller the income, the more fragile your personal finances will be as a starting point.

If you want a loan of USD 75,000, it is problematic if you are only 19 years old and with Student loan as income. It puts you at a difficult starting point.

An important point, however, is that you can always apply completely without obligation, so the worst you can get is a NO. Therefore, you should not be afraid to look for opportunities even if you are not sure of a YES.

If your income is the problem, you may want to consider applying with your boyfriend or spouse. By applying for a loan with a co-applicant , you will stand stronger as you are both two to share the expense and, overall, can show a higher income. So that’s something you can consider if one of you has been rejected. However, it mainly makes sense if the money is to be spent on something in common.

Too much debt

As the third reason, we have too much debt. If you already owe a lot of money, through a home or car loan, these must also be paid off every month. It squeezes your personal finances and gives you a smaller amount of money available.

In short, the lender will be at greater risk by lending you the money. If this risk becomes too great because the relationship between your debt and your income is too great, it can result in a rejection.

If you have a lot of debt, you should definitely consider refinancing your expensive loans , as it will give you a better home economy through a lower interest rate and greater financial overview. Here, you put all your expensive debt into a single solution so you can achieve lower credit costs.

You do not meet age requirements

The last and fourth cause is the age requirement. All companies on the net have an age requirement for their applicants. It can be anywhere from 18 to 23 years, depending on who you apply to. 

That way, you know who can help you and who you shouldn’t spend energy on. Our information on loan amounts, age and APR should contribute to an easier and faster application process for you as a consumer.