Emmanuel Elee
May 28, 2025
Why Your Loan Application is Rejected
If you’ve ever applied for a loan and got that dreaded notification application rejected you’re not alone. Many Nigerians searching for urgent cash, instant loans, or personal loans face rejection for reasons that are often completely avoidable.
In this guide, we’ll break down the six most common reasons your loan application gets rejected, explain what lenders (especially loan apps in Nigeria) are really looking for, and share practical fixes that can help you get approved next time.
Whether you’re after a low-interest loan, a loan without collateral, or simply the best loan app for emergencies, this guide is for you.Understanding Why Your Loan Application is Rejected
With the rise of digital lenders and instant loan apps, getting quick cash should be simple. But in reality, thousands of applications are denied daily. So, what’s going on? Let’s explore the key reasons.
1. Poor Credit Score
One major reason your loan application may be rejected is a poor credit score. Lenders, especially digital lenders or loan apps, rely heavily on credit history to assess risk. If your report shows late payments, defaults, or unpaid debts, it will reduce your chances of approval.
Did you know? According to the Credit Bureau Association of Nigeria, more than 60% of first-time borrowers have weak or no credit history.
Beyond getting loan approvals, a poor credit score could negatively affect you or your business in other ways (eg, some job applications might require a credit report. Also, a bad credit history might narrow your chances for visa approval
The fix? Start paying your bills on time and reduce your outstanding debts to rebuild your creditworthiness.
2. Incorrect or Incomplete Information
Sometimes, the simplest errors cause rejection. Incomplete forms, wrong account details, or inaccurate income declarations can cause you to be perceived as fraudulent, which can lead to disqualification. Always double-check your information before submitting your application through any loan app in Nigeria.
3. Insufficient Income
Many personal loans require a consistent and sufficient source of income. If your earnings can’t comfortably cover both your living expenses and loan repayments, lenders will see you as a high-risk borrower. Whether you're using a loan app in Nigeria or applying through traditional means, it is financially unwise to take loans beyond your capacity, as this could lead to an inability to repay, thereby leading to a poor credit score.
4. Unstable Employment
Frequent job changes or gaps in employment are red flags to lenders. Even if you’re self-employed, most loan apps require verifiable income. Providing documents like bank statements or business income summaries can help prove your financial stability.
5. High Debt-to-Income Ratio (DTI)
Your DTI measures how much of your income goes toward existing debts. A high ratio suggests that you're financially overextended, and that makes it harder to get new credit. To improve your chances with instant loans or low-interest loans, reduce existing debts before applying.
6. Excessive Debt
Do not owe too many loan apps at once. Paying off existing obligations will increase your available credit and improve your financial profile.
Reason | Why It Leads to Rejection | How to Fix It |
|---|---|---|
Poor credit score | High risk of default | Pay bills on time, start small |
Wrong/incomplete info | Can’t verify you | Double-check details |
Low income | Can’t cover repayment | Use a salary account, borrow small |
Job instability | Unreliable repayment | Show proof of steady income |
High DTI | Too much debt already | Clear debts before reapplying |
Too many loans | Looks desperate | Stick to 1–2 apps max |
Read More: Top 10 Best Loan Apps in Nigeria 2025
How to Increase Your Chances of Approval
Here’s how to make your next loan application more successful:
Check and improve your credit score regularly.
Maintain a stable income source.
Reduce your current debts to lower your debt-to-income (DTI) ratio.
Use trusted and best loan apps with strong reputations.
Submit accurate and complete information.
FAQs
How much can I borrow from QuickCheck?
QuickCheck offers urgent loans ranging from ₦10,000, ₦30,000 to ₦500,000 or even ₦1,000,000, depending on your creditworthiness and eligibility.
How does QuickCheck work?
You can begin your application by downloading the QuickCheck app from the Google Play Store.
After downloading the app, please fill in the provided fields correctly.
Submit your application on the app.
Verify your identity
Add your preferred means of repayment
Your loan will be disbursed in less than 5 minutes
How secure is my personal and financial information with QuickCheck?
Your personal and financial information is 100% secure with QuickCheck. The platform is fully compliant, which means we strictly adhere to data privacy and security standards. QuickCheck is committed to protecting your sensitive information—from your BVN to your loan details, so you can borrow with confidence and peace of mind.