As part of the loan assessment, we follow credit union policies regarding your income, expenditure, disposable income, spending habits and credit history. Our loans team review your income and expenditure to see how much disposable income you have available (what’s left over after you’ve paid your essential living expenses) and can therefore afford to repay each week/month. We may review your credit history which includes other loans, mortgages and other debts you may have.
Remember, as a Member-owned credit union, we are lending money that is our Members’ savings, and it would be irresponsible to lend to those who are unable to repay.
My loan application was declined – what can I do?
It can be disappointing if your loan application is declined, but there are steps you can take to understand why.
- Declined due to credit report – you can check your credit reports for free. Learn how here.
- Don’t keep applying – credit applications may show on your credit report, and several applications in a short space of time might make lenders think you’re struggling to meet your existing repayments and may make it harder for you to access borrowing.
- Declined due to affordability – taking time to manage your money better can really pay off. It can help you stay on top of your bills, feel more in control and save money on interest each year.
- Click here for great advice on getting started including an easy to use online Budget Planner.
- Start saving – saving regularly helps protect you from unexpected financial pressures and helps you manage your money more effectively. Saving a few ££s each payday is a great habit to get into and helps show you could afford repayments when you are eligible to reapply.
- Declined due to missed repayments – missed loan repayments can mean you are financially overstretched. Additional borrowing is not always the best option and it could be irresponsible for us to consider increasing your lending. If you have a loan with us and are experiencing money worries, please contact us immediately – we will work with you to find the best solution.
