Declined for a Personal Loan? How to get things back on track

a young woman feeling excited getting back on track


Being turned down for a personal loan can leave you feeling pretty fed up. To help get back in control of the situation, the first step is to find out from your lender why your application was declined.

Remember that a declined personal loan is not the end of the story, this is about reassessing your financial situation and you are on a fact-finding mission. Once you know the reason, you can plan on what to do next and here we show you a simple guide to help you get credit back on track:

Get a copy of your credit report
Your credit report contains all the information about your credit history, collected from credit providers, courts and other organisations by credit reporting agencies and is available online - free through organisations like Equifax, Dun & Bradstreet or Experian. Having a copy will help you to:

  • Make sure you’re aware of any listings against your name;
  • Check that the report is factually correct; and 
  • Help you make plans to improve your ability to obtain credit in the future. When you have the report, check all the loans or debts listed are actually yours and that all details are correct, from personal details like your name and date of birth to loan types and amounts. Errors can happen so if any information is inaccurate, make a request to have it corrected.

Depending on the type of overdue debts, they’ll typically stay on your file for five or seven years, but your file will be updated if you’ve paid out the balance of a debt. In addition, many lenders want to know what actions you’ve taken to address any past credit mishaps, so it’s good to make sure any defaults get paid off to show lenders you’ve made good progress. You can learn more about credit scores here.

Create a budget
Take a look at our budgeting tips. If you can create and stick closely to a budget, you can manage your debts better and start to build up savings, which is a great way to show any credit provider that you can manage making repayments on any future loans.

Get some help
If you find you’re struggling with debts and feeling stuck, don’t do it alone – get some help. There are free financial counselling services available throughout Australia. Search for someone who can give you good advice here or check out the National Debt Helpline. They have lots of resources to help you get back on track.

When you’re back on track you can use this handy calculator to get an indicative rate and find out how much repayments might be next time you are looking for a loan. That way you can plan them into your budget and make sure they can work for you. Then, when you’re ready, apply online and receive a decision within minutes.

If you’re having and trouble applying online give us a call on 1300 659 430 or get in touch with an accredited Pepper Money broker. We’re here to help.

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