Why Was My Loan Declined?You’ve found your dream house, car, or dining suite – but then your loan application is declined. Often, the reason is a negative credit listing, and without a clear explanation, it can be confusing.
How Lenders DecideWhen you apply for credit, the lender checks your credit report and overall financial profile (income vs expenses, job stability, dependants, etc.) to assess how risky it would be to lend to you. Each lender has its own criteria, so outcomes may vary.
Is It the Credit Bureau’s Fault?Only the lender can approve or reject your application. If declined, you can request the reason in writing. If it’s due to a credit bureau report, the lender must give you the bureau’s contact details so you can check your report.
Steps to Improve Your Credit Profile1. Get Your Credit Report: Call 061 227 142 or visit TransUnion at 269 Independence Ave, 1st floor, Room 116.
2. Check for Errors: Review your report and dispute any mistakes with proof (e.g. receipts).
3. Identify Negative Factors: Late or missed payments can lower your credit score. Start paying on time and in full. Catch up on overdue accounts.
4. Recheck and Reapply: After a few months of good credit behaviour, get a new report. If it reflects improvement, apply again with more confidence.
2. Check for Errors: Review your report and dispute any mistakes with proof (e.g. receipts).
3. Identify Negative Factors: Late or missed payments can lower your credit score. Start paying on time and in full. Catch up on overdue accounts.
4. Recheck and Reapply: After a few months of good credit behaviour, get a new report. If it reflects improvement, apply again with more confidence.
