We understand that it’s disappointing to have your loan application declined, and we want to be as transparent as possible about why this can happen and what you can do next.
Updraft’s lending decisions are based on our commitment to responsible lending. This means we must ensure every loan we approve is affordable and suitable for a customer’s financial circumstances.
For data protection and commercial reasons, our support team cannot discuss the specific, detailed reason for an individual decline. The decision is made by our automated system, which assesses a combination of factors from different sources. However, we can share the common reasons why an application may not be successful.
Common Reasons for a Decline
A decision is never based on one single factor - it’s a combination of several. The most common reasons fall into two areas:
1. Information on Your Credit File
Lenders review your credit file to understand your history of managing debt. Some common factors on a credit report that can lead to a decline include:
A history of missed or late payments, defaults, or County Court Judgments (CCJs).
A high amount of existing debt with other lenders.
A limited credit history (sometimes called a "thin" credit file), which makes it difficult to assess your borrowing history.
Too many applications for credit in a short space of time, resulting in multiple 'hard searches'.
Incorrect or out-of-date information on your credit report.
2. Your Affordability Assessment
As an FCA-regulated lender, we are required to ensure loans are affordable.
. We assess affordability by looking at:
Your income and expenditure: Whether your disposable income is sufficient to cover repayments after essential spending.
Your current financial situation: Signs of financial difficulty, such as recent gambling activity or frequently using an unarranged overdraft, can be a factor.
Income stability: Whether your income appears consistent and reliable over time.
What You Can Do Next: A Constructive Path Forward
Step 1: Check Your Credit Report
You have the right to check your credit report for free. We use TransUnion , so that would be a great place to start. You can also check your reports with the other two main agencies, Experian and Equifax.
Look for:
Errors: Correct any inaccurate or outdated information by raising a dispute with the agency.
Trends: Review the factors that are negatively impacting your score so you know what to focus on.
Security: Check for any unfamiliar accounts or searches that may indicate fraud.
Step 2: Use Updraft’s Free Tools
Even if you weren’t approved for a loan, you can still benefit from the free features in the Updraft app - including your credit score monitoring and spending insights. These can help you understand your financial position and track progress over time.
Step 3: Get Free, Impartial Advice
If you’re concerned about debt or your financial situation, free and confidential support is available from independent charities such as StepChange, National Debtline, and MoneyHelper.
Can I re-apply?
We recommend waiting at least four to six months before re-applying. This gives your financial situation time to change and for your credit file to be updated with new information. Re-applying immediately is unlikely to result in a different outcome.
At Updraft, we’re committed to helping our customers improve their financial wellbeing - whether that’s through responsible lending or free tools to help you better understand and manage your money.