Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Get in touch
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Greenbacks
- Explore Bank
- Accounts
- Everyday banking
- Kids accounts
- Youth banking
- Seniors accounts
- Private Clients
- Private Wealth
- Digital wallet
- See all accounts
- Premium banking
- Get help choosing
- Goal saving
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Discontinued accounts
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Kids accounts
- MiGoals4Kids
- Youth banking
- MiGoals Premium
- MiGoals
- MiGoals Plus
- Seniors accounts
- MiGoals Premium Senior
- MiGoals Plus
- Private Clients
- Pay-as-you-use
- Young Professionals
- Private Bundle and Private One
- Private Wealth
- Private Wealth Bundle
- Digital wallet
- MobiMoney
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Send and receive international payments
- Safe and secure incoming international payments
- Secure outgoing international payments
- To Africa
- Greenbacks
- Exclusive discounts
- FAQ
- How-to guides
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Explore Borrow
- Personal loans
- Loan consolidation
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Loan consolidation
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R32,000 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Explore home loans
- FAQ
- How to guides
- Track application
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R32,000 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Debt assistance
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- Consolidate all your debts into a simple loan | Nedbank
- Short-term payment relief | Nedbank
- Take charge and restructure your finances | Nedbank
- Assisted-sales solutions for homes and vehicles | Nedbank
- Flexible payment plans for loans and credit | Nedbank
- Understanding how repo rate works | Nedbank
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Business cover
- Secure investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Valuables insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Valuables insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Business cover
- Secure investments
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Income Plan
- Guaranteed Growth Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
3 reasons your loan application is turned down
Your affordability, financial behaviour and history all play a role...
It’s never easy to accept having your loan application declined, but it’s important to know why. Armed with that knowledge, you can then try to fix it. Let’s take a look at 3 common reasons why your loan application might be turned down:
Affordability is important
It could be a matter of affordability – a word that means something specific when the bank is considering your loan application. When you compare your monthly income to your existing monthly expenses, debt repayments and other financial commitments, the amount you have left over is called your discretionary income. Whether the bank considers a loan ‘affordable’ for you depends in part on how much of your discretionary income the loan repayments will take up.
So, a way to reduce the chances of an application being denied is to work out affordability, based on your own income and expenses, before you apply. Use our repayments calculator to work out how much you can afford to repay.
Apart from affordability, the bank will also consider your financial behaviour and financial history when considering a loan application.
Your credit history matters, too
In many cases, a loan will be declined because of a poor credit record.
Your credit record is like a ledger that contains details of your current and past financial behaviour. It’s a history of all the debt you’ve had, or still have, and how you’ve managed that debt. It includes things like cellphone subscriptions, credit cards, personal loans and any other credit you repay monthly.
Missed payments or late payments leave black marks on your credit report and lower your credit score – black marks that could stay on your record for as long as 3 years. A poor credit history and a low credit score is a red flag that warns prospective lenders of higher risk, and it could be the reason your loan application is declined.
This is another good reason to check your credit report, once a year.
Too many loan applications are a no-no
When you’re turned down for a loan, you might be tempted to simply apply for another loan at a different lender – or other forms of credit, like a credit card. This could be a mistake.
Remember: a certain amount of well-managed debt can improve your credit score
Every time you apply for credit, this goes into your credit record. If lenders see that you’ve applied for several types of credit or multiple loans in quick succession, they see red flags – in other words, a potential problem.
Multiple applications in succession could mean someone is trying to get as much credit as they can because they foresee cashflow problems ahead. If they take on too many loans, they could also struggle to repay them all – another reason too many applications will affect someone’s credit score.
What to do if your loan is declined
If your loan is declined, you won’t know whether it was because of 1 of these 3 reasons or another factor. But if the reason was ‘too many applications’, immediately applying for loans with other lenders will only make things worse.
That’s why it’s best to talk to the bank, right away, and find out why your loan application was refused. If the problem is affordability, your lender may be able to advise you on how to restructure your credit portfolio so that the loan is affordable. Or the solution might be setting your sights on a smaller loan.
If the problem is your credit record, take comfort from the fact that you can restore it over time. Your service provider can advise you on what steps you can take to improve it.
Remember: a certain amount of well-managed debt can improve your credit score. A loan can be a force for good.
