Why loan or credit card applications may be declined

Understanding why applications are declined can help you identify the steps to take to qualify in the future. We evaluate all UNFCU loan and credit card applications equally, based on several factors. If your application is declined, we cite the specific reason in our loan declination notice.

Top reasons for declined applications 

A loan you had with a creditor was not paid as per the agreed terms. As a result, the creditor transferred the loan to a collection agency and/or took legal action to collect the debt. 

A review of your loan payment history, including UNFCU loan payments, shows late or overdue payments. 

Based on your current income, we deem it will be difficult for you to repay your existing loan obligations. 

Your current income does not qualify you for the loan amount you requested.

You currently do not meet one or more of our eligibility requirements for unsecured loans. 

For more information, view FAQs about loan eligibility

Certain factors indicate that you are taking on too much debt. These factors include the number of loan requests and inquiries you have made in the past 12 months. The total balance of your existing loans may also be a factor. 

The amount of credit that you requested was higher than the maximum amount we established. We set lending limits based on a number of factors including:

  • UN contract type
  • Length of employment
  • Income
  • Existing loans
  • Other expenses
  • Loan payment history
  • Length of UNFCU membership
  • Country of employment
  • Currency of income

These factors and lending limits are subject to change at any time.

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