Reasons you get denied a personal loan in Singapore.

by in Uncategorized December 15, 2022


Personal loans are a great way to invest in your future, but you can’t just apply for one without considering the factors that might disqualify your application. 

If you’ve been denied a loan before, it’s time to take a closer look at these criteria to keep them in mind when applying for a personal loan next time.

Your credit score is low.

If you have a low credit score, this will be one of the main reasons why you get denied loans. 

A credit score is one of the most important factors that lenders consider when deciding whether or not to give someone a loan. 

Your credit score is based on your financial history and how well you managed your previous loans and payments.

A good credit score will mean that lenders see you as more reliable and trustworthy, which means they are more likely to lend money to you without worrying about getting it back with interest. 

If your credit score is too low, however, then lenders may not trust that they’ll be paid back by such an unreliable borrower, so they’ll refuse any applications from people with poor scores.

You are too reliant on loans.

If you are using a lot of credit cards and taking out too many personal loans, likely, your income will not be enough to cover your expenses.

 Your financial situation has deteriorated to the point where you need to take out more loans just to pay off the existing ones. 

This will only worsen things, as it shows that you do not have enough monthly money.

If you are having trouble making ends meet each month, it is time to take action. You can cut down on your expenses to align with the amount of money.

 You can also consider getting a second job or starting a side business to increase your income.

Your debt-to-income ratio is high.

Your debt-to-income ratio is the amount of debt you have compared to your income. The higher your debt-to-income ratio, the less likely you will get approved for a personal loan.

If your debt-to-income ratio is high, it will be difficult to pay off any new debts because most of your income will be spent on paying off existing debts. 

That’s why lenders look at this number when deciding whether or not they should lend money to people like yourself.

You Have An Unstable Job History

One of the most common reasons people is denied a personal loan is their unstable job history. 

When applying for a loan, the lender will look at all aspects of your financial situation to determine whether you can afford the loan payments and still cover basic expenses. One of those things that lenders look at is your income history and how long it’s been since you began working at each company.

If it looks like you’ve changed jobs often to earn more money or take advantage of better benefits, or if there have been long gaps between jobs where no money was coming in, this can also be seen as a red flag by lenders and may result in them denying your loan application.

You have a bad credit history.

Banks will likely reject your application if you have a poor credit history. To be eligible for a personal loan, you must show that you have improved your credit score or at least have no missed payments within the last six months.

 You can do this by paying off existing debts and not applying for new loans until all of your current debts are paid off.

If your credit score is still below 650, you may need to work on improving it before applying for a personal loan. You can do this by paying off existing debts and not applying for new loans until all of your current debts are paid off. If you have missed payments, try to make them up before applying for a personal loan.


There is no shame in getting a personal loan denied. The important thing is to know why you might be getting rejected so that you can work on improving your credit score and financial situation.

 If you are looking for help with your finances, we recommend working with a financial advisor who understands your situation and can assist you in finding the right solution for your needs.