27th Feb 2020

Check with the lender on the reason for declining your application. Usually, banks look at your credit score to determine your ability to pay back and your past financial habits or patterns, including any loan applications that were rejected or approved.

Too many existing loans under your name could also affect your ability to get a new one as it increases your debt service ratio (DSR). If you exceed the lender’s DSR upper thresholds, then chances are your application will be declined.

It’s important to know that past rejections of loan applications contribute negatively to your overall score – so it’s best to strategise your next loan applications wisely.