Your loan wasn't approved — here's what that actually means

A decline isn't a judgement on you. In most cases it means the numbers didn't leave enough room, and another repayment would have made things harder, not easier.

But there is a different option, and it's the one the team at Safe can help you with...

One repayment instead of several

Safe Debt Management is part of the Safe Financial group and work with Australians who are juggling multiple debts and want a way to bring them under control, without taking on more credit.

Some of these options include Pay-In-One or a Debt Agreement, which you may not have considered before. Depending on your circumstances, that may mean:

• Combining what you owe into a single regular repayment, so there's one date and one amount to manage instead of five
• A repayment amount based on what you can actually afford, rather than what each creditor is currently demanding
• Reduced or paused interest and fees on the debts included, where your creditors agree to it
• A defined end point — a plan with a finish line, rather than minimum repayments that stretch on indefinitely

A debt specialist can help you identify other options that are suitable for your situation and it costs nothing to find out where you stand because they offer Free Assessments where you'll speak with a specialist who will go through your situation, explain what you'd be eligible for, and tell you honestly if none of it suits you. There's no obligation to proceed and no cost for the conversation.

Find out your options and start the conversatoin today.

Find another lender through our partner network

To give you another option, we've partnered with Australia's largest loan-matching platform. If you'd like, click the link below to see if they can connect you with a lender that can help. By continuing, you consent to Safe Finance sharing your personal and credit information with participating lenders to assess suitable loan options.

Find another lender here.

Why Safe Financial cannot approve all small personal loan applications.

If you'd like the detail, here's what sits behind the decision.

Affordability. We look at your income against your living expenses and existing repayments. If what's left over wouldn't comfortably cover a new repayment, we can't approve the loan — even if you're confident you'd manage it.

Existing commitments. Several active debts can mean that most of your income is already spoken for. This is the most common reason applications from otherwise reliable borrowers don't proceed.

Your credit file. We do consider applications from people with imperfect credit histories. But recent defaults or missed payments, alongside tight affordability, can tip an assessment.

Suitability. If the loan you applied for doesn't match what you told us you needed it for, we're required to look closely at whether it's the right product.

Responsible lending obligations. Lenders and brokers are required by law to assess whether credit is suitable for you. Declining an unsuitable application isn't us being cautious — it's the law working the way it's meant to.

You may also have been given a conditional approval earlier in the process. That's an indication based on limited information, and it can change once a full assessment is completed.

What you can do to improve your next loan application?

Before taking out another loan, consider if it's the best solution for your financial struggles. While a loan may be helpful for addressing small or urgent money problems, it may not address the bigger picture.

1. Obtain a copy of your credit report. An incorrect or poor credit report can negatively affect any loans or credit you may apply for in the future - so you need to make sure the information contained in it is accurate. You have the right to access your credit report, review it and correct any wrong information. For more information about obtaining and reviewing your credit report, visit www.mycreditfile.com.au.

2. Create a budget. Setting a budget for your household expenses and sticking to it will undoubtedly save you money. If you get into the habit of recording your spending, you're on the way to taking control of your money. If you stick closely to your budget, you can build up savings to show credit providers that you can repay any future loans. 

Other useful links

Savings goal calculator — determine how long it will take to reach your savings targets.

Budget planner — work out your current spending and how much you can afford in repayments.

Credit card calculator — work out how long it will take to pay off your credit card.

Please note: Fees, terms and eligibility criteria apply. Outcomes depend on your individual circumstances and on agreement from your creditors. This is general information only and does not constitute financial advice.