If I can’t borrow the amount I need, will I be offered a lower amount?
For both secured and unsecured loans, a lender will look at your credit history to see how you have managed previous loan and credit accounts. They will decide if you can afford the loan you are applying for based on your income and outgoings and will assess your risk as a potential borrower based on how likely you are to be able to pay back the loan amount requested. If the risk is deemed too high, your loan application will be rejected. If the risk is acceptable the lender will make you a loan offer (subject to other minimum requirements). Therefore, the loan amount offered to you will be based on what the lender believes you can afford to repay and if your loan application is rejected it is because they think you are too much of a risk.
Freedom Finance can’t provide reasons why individual loan applications have been rejected, but we provide you with free, accurate loan quotes from our partnered lenders which are tailored to your specific circumstances so you know how much you are likely to be able to borrow and we do offer a range of finance guides to advise why your application may have been rejected and to offer practical ways you can improve your credit rating. These guides include a loan application checklist which tells you the things you should consider before making a loan application to give yourself the best chance of success without damaging your credit rating. It also highlights other possible forms of lending which may prove a cheaper option than a loan if you just require a small amount of money for an unexpected relatively low-value purchase, to pay for a holiday or tide you over an expensive time like the upcoming summer holiday season. Remember – you should only borrow what you can realistically afford to repay. Our personal monthly budget planner is a useful tool to help you with these calculations.
- Can I make overpayments on my loan?
- How long does it take to process an unsecured loan?
- I have taken out a secured loan, but I am moving to a new property? Will this be a problem?
- I need £7,000 for home improvements. Is a secured or unsecured loan best?
- What additional support do you provide after I’ve applied for an unsecured loan?