What to Do If You’re Turned Down for a Loan

2 Min. Read

We get it. Having your loan application denied can feel like a personal rejection.

Behind the scenes, your application was reviewed against a number of factors that lenders weigh in loan decisioning. These factors are often black-and-white qualifications that leave little room for flexibility, and when they return a denial, most banks leave it at that. But financial institutions that believe in an alternate approach may give you advice and encouragement that can improve your chances of acceptance next time.

If you’re turned down for a loan, a compassionate lender might encourage you to take these steps:

Review Your Decline Notice

Lenders who deny a loan are required to send what’s called an adverse action notice, which lists the reason or reasons your application was declined. The information in this report will help you understand if you need to focus on increasing your credit score, saving for a larger down payment, or applying for a smaller loan amount.

Review Your Credit Report

If you’re turned down for a loan, it’s smart to request a free copy of your credit report from one of the 3 credit agencies: Equifax, Experian, or TransUnion. Your credit report will be able to shed additional light on your current financial situation.

When you get your credit report, review it carefully to check for errors. If you spot any inaccuracies, you can dispute them with the credit bureau to clear your personal financial history. Also, look out for signs of identity theft, such as accounts you didn’t open, purchases you didn’t make, or credit applications you didn’t submit.

Improve Your Credit Score

One of the biggest reasons many loan applications are denied is because the applicant’s credit score didn’t meet a certain threshold. If you’re denied a loan because of your credit, you can take steps to boost your score. Building good financial habits, like catching up on debt payments and paying down balances, will help you improve your financial standing and make it easier to get a loan in the future.

Get Help from a Certified Financial Counselor

If you need help getting your finances back on track, you can receive free, professional advice from a certified counselor. Marine Credit Union has more than 50 certified financial counselors across our financial empowerment centers, and our members are also eligible for free counseling with GreenPath Financial Wellness. You can also find a nonprofit credit counseling agency near you through The National Foundation for Credit Counseling (NFCC).

Do Your Research and Re-Apply

Not all lenders have the same qualifications or requirements. Lending rates, fees, and terms can vary widely from bank to bank, and so can their approach to working with you. If you’re turned down for a loan by one lender, research others who work with a different philosophy, or seek recommendations from friends or family members.

2 Min. Read

Marine Credit Union: People Helping People

At Marine Credit Union, we believe in people helping people. Every financial situation is complex, and the path to financial freedom doesn’t always travel in a straight line.

If you’ve been turned down for a loan in the past, we can help you understand what happened, explore your options, and identify next steps that make sense for you. Our approach is rooted in care and compassion—because moving forward is easier when you don’t have to do it alone.

Experience a different approach with Marine Credit Union. Learn more about applying for a loan or reach out to our team for help.