What could be causing my online loan rejections?

As digital lending evolves in Nigeria, getting a loan through a website or mobile app should be easy and quick. Incomplete, inconsistent, or mismatched information, especially details that don't align with public records like your BVN or NIN, can lead to your application being automatically rejected.

So, why is the online loan app rejecting you? Here are the most common reasons and what to do about them.

Low or Bad Credit Score
Your credit score is a key factor that online lenders consider. If your score is low or your credit history includes overdue loans, missed payments, or defaults, the system may classify you as a high-risk borrower.
What to do:
Check your credit score and report on Scorewise. If you’ve defaulted in the past, work on repaying outstanding debts and rebuilding your credit profile.

Multiple Unpaid Loans from Different Platforms
If you have borrowed loans from multiple apps simultaneously or defaulted on past loans, your profile might be overexposed. Lenders can identify this via your Bank Verification Number (BVN), which connects all your loan history across platforms.
What to do:
Pay off any pending loans. Don't borrow from multiple apps simultaneously. Practice responsible borrowing with one lender before applying to another.

Inconsistent or Unverifiable Information
Lenders typically verify the personal and financial information you provide. Incorrect information that doesn’t align with public records like your BVN or NIN can lead to your application being automatically rejected.
What to do:
Double-check that all your data is correct and current, particularly your name, telephone number, address, and employment or income information.

No Credit History
If you've not borrowed before, you may lack an adequate credit history for lenders to assess the risk. In such a case, your application can be rejected because the system lacks the details to determine your creditworthiness.
What to do:
Start borrowing small sums from approved lenders and repay on time, or buy something using Oja’s BNPL. This will gradually build up your credit profile.

ecent Changes in Lending Criteria
Loan apps may suddenly tighten their requirements due to economic changes, rising default rates, or new regulations. Even if you qualified before, you might not meet the updated criteria.
What to do:
Maintain good financial records, pay your bills on time, and reapply once your credit score improves.

Negative Reports or Blacklisting
If you do have a credit file or are blacklisted due to past loan issues, lenders might outright reject your applications based on that information.
What to do:
After settling previous debts, request the lender to reinstate your credit file. If updates are missing or information is inaccurate, you can file a complaint with the credit bureau to have it corrected or removed.

Suspicious or High-Risk Activity
Loan applications may trigger your application if:

• Frequent loan applications across multiple lenders in a short time
• Inconsistent personal information
• Accessing the app from different or foreign locations repeatedly
• Providing incomplete or fake information
• Having contacts linked to blacklisted or defaulting borrowers

These habits can be classified as suspicious, even if unintended.

What to do:
Keep your contact and device information static. Use one account only and avoid multiple registrations with the same device or BVN.

Low or Unstable Income
Digital lenders usually estimate how much you can repay based on your transaction history, bank balance, or self-reported income. If you have sporadic or poor income, they might decline your application.
What to do:
Maintain a steady flow of income in your account.
It's frustrating to be denied by online lending sites, but understanding why you were turned down helps you do the right thing. Review your credit history, pay off old debts, and maintain accurate records. Your credit record will improve over time, and so will your chances of being approved.

If you're consistently being rejected, your first step is to check your credit score. Download Scorewise on the App Store or Play Store.