Reasons Why Loans Don’t Get Approved
At Cash Today, we do everything we can to give you the best possible chance of being approved. That includes matching you with the lender most likely to say yes based on your unique situation. But some factors are outside our control – especially when it comes to responsible lending obligations.
These are the five most common reasons loans aren’t approved, based on our internal applicant data.
At a Glance: Loan Decline Reasons
- Dishonours on bank statements (33%) – Failed payments signal financial instability.
- Repeat or incomplete applications (24%) – Reapplying too soon or not providing the required info.
- Poor credit history (20%) – Defaults, collections, or a very low credit score.
- Insufficient income or unstable cash flow (18%) – Not enough income or erratic deposits.
- Overall high risk (16%) – A combination of red flags across income, credit, or expenses.
What Each of These Means (And What You Can Do)
1. Dishonours on bank statements (33%)
Dishonours occur when a scheduled payment — like a direct debit, bill, or loan repayment — bounces due to insufficient funds. Multiple dishonours within a 90-day period suggest to lenders that you may be struggling to manage your current financial obligations.
What to do:
If you’ve recently had dishonours, wait 90 days before reapplying, and ensure your account stays in positive balance over that time.
2. Repeat or incomplete applications (24%)
A large number of declined applications come from people who reapply too soon or don’t complete the process properly.
The most common mistake? Entering an incorrect email address or phone number during the eligibility check.
If you’re matched with a lender and want to proceed, your loan offer is typically sent by email for you to review and accept. But if there’s a typo, or you’ve entered dummy details — like a fake email to avoid spam — you won’t receive that offer, and you may miss out on the loan altogether.
We get it, you might just be checking your options. Rest assured, Cash Today doesn’t send marketing emails, and we’ll only ever call you if we need extra details to complete your application. So if you think you might want to proceed, it’s worth entering your real contact info, just in case.
What to do:
Only apply when you’re ready. Double-check your details and documents before submission, and don’t reapply unless your financial circumstances have improved.
3. Poor credit history (20%)
If your credit file shows defaults, overdue debts, court judgements, or frequent missed payments, it lowers your perceived trustworthiness to repay a new loan, particularly for larger loan amounts.
What to do:
If your credit is poor, you may still qualify for a smaller loan. For example, some payday advance loans don’t require a credit check. Otherwise, take time to improve your score before applying again.
4. Insufficient income or unstable cash flow (18%)
Even if your income technically meets the minimum requirement, lenders need to see that your income is regular and your expenses leave enough room to afford repayments. Erratic pay cycles, Centrelink-only income, or high outgoing bills can all work against you.
What to do:
Show consistency. Having regular deposits (wages or benefits) and a clear buffer between income and expenses will strengthen your position.
5. Overall high risk (16%)
This one comes down to the full picture. Even if you tick most boxes, a combination of minor concerns — like a borderline income, small recent dishonour, and multiple short-term loans — may add up to a “no.”
What to do:
Consider applying for a smaller amount or shorter term to reduce risk. Clearing just one red flag (like a recent payday loan or dishonour) can often make the difference.