Overview
If your loan application was not approved, there are several possible reasons why you may not have qualified at this time. This article explains common decline factors and steps you can take to better understand your application outcome.
How to Find Out Why You Were Not Approved
If your application was declined, you’ll receive an Adverse Action Notice (AAN). This is available in your Upstart account and may include:
The reason(s) your application was not approved
Your credit score at the time of the decision (if a credit report was accessed)
The name of the consumer reporting agency (CRA), if applicable
📌 Note: Not all AANs will list the specific reasons for denial. For some application types, the AAN may instruct you to call for more information.
Common Factors That May Lead to a Non-Approval
While every application is evaluated individually, here are some common factors that may contribute to a decision to decline your loan request. These are general examples and may not match the exact language in your AAN:
Increased Account Usage – High usage of credit across installment or revolving accounts may impact eligibility.
Insufficient Credit Profile – Limited credit history or unreported limits may make it difficult to determine your ability to repay.
Past-Due Accounts or Delinquencies – Prior payment issues, charge-offs, or checking account closures may factor into the decision.
High Balance Utilization – Carrying large balances on non-mortgage credit lines (e.g., credit cards, auto loans) can affect approval.
Incomplete Verification – If we are unable to verify the information you provided, your application may not be approved.
State Restrictions or Product Availability – Some loan products may not be available in all states.
Ineligible Collateral – For auto-related loans, a vehicle may not qualify due to age, mileage, or other criteria.
What to Do Next
While we can’t guarantee approval on a future application, you may be eligible to reapply. Here are some steps that may help:
Review Your AAN – This will provide more insight into why the application was not approved and what data was used.
Check Your Credit Report – Look for outdated or inaccurate information that could be affecting your credit profile.
Reduce Existing Debt – Lowering your balances may improve your debt-to-income ratio (DTI).
Build or Improve Credit – Making on-time payments and lowering credit utilization may help over time.
Wait Before Reapplying – If your application was declined, you’ll need to wait at least 30 days before submitting a new application.
📌 Important: Taking these actions may help improve your financial profile, but they do not guarantee loan approval.
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