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Personal loan denied


Personal loan denied

I’m trying to follow all the rebuilding steps, but I’ve hit a snag. Bankruptcy was discharged 6/6/18. Kohl’s card was not IIB and remains intact and active with a $300 CL. Pre qualified and applied/approved for Capital One, no yearly fee $2000 credit line reviewed after 5 months. Shocking because Cap1 was IIB for close to $7000.00. I applied for a $1000 personal loan with my credit union and was denied. I don’t want another hard pull (I’m at 2 for the last 2 1/2 years) so should I just accept the decline and try again in a year?
Message 1 of 8
Established Contributor

Re: Personal loan denied

Do you really need the personal loan? Is it just to carry an installment on your reports? 

Message 2 of 8

Re: Personal loan denied

No, I don’t need the loan. I was just trying to establish a small installment to show on my reports.
Message 3 of 8
New Member

Re: Personal loan denied

Was it a normal personal loan or a secured/credit builder loan? 


3 days after my discharge I applied for a loan through my CU, I got a call from them the next day. Just called looking for basic information and how I was planning to use my loan. Once I informed the loan rep what I was trying to do he said it would be an easy approval for him.


Basically, all I told him was that I don't need the funds, its strictly for rebuilding my credit and I'd be willing to use my savings as collateral. He ended up creating a 2nd savings account for me and deposited $500 into it that I can't access (can make deposits to it though) and every month the payment is automatically pulled from it. 


I bank with America First Credit Union btw. It did have a hard inquiry associated with it though, I later found out that another credit union local to me (One Nevada) also offers credit builder loans but don't pull credit, you just need to have the funds (minimum $1,000 loan for a minimum of a year).


Message 4 of 8

Re: Personal loan denied

It was a normal, unsecured personal loan with the credit union I already have accounts with. I did note on the application that it was for credit rebuilding purposes. I may wait for the letter and then call the loan officer. If that doesn’t work, is it worth joining Navy Fed? My father was a vet so that is a real possibility for me. I just don’t want to keep having hard pulls with no success.
Message 5 of 8
Valued Contributor

Re: Personal loan denied

Nobody is going to give you an unsecured personal loan just days after discharge.


It's a shared secured loan that you want, and you only need one if you have no other installment loan (mortgage/car/student) reporting.

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards/PenFed Pathfinder AMEX - $60k total revolving
Message 6 of 8
New Contributor

Re: Personal loan denied



Is it worth it to join Navy Fed? Absolutely! They are a terrific credit union,

they will treat you very well, and they're extremely generous with starting

limits and credit limit increases. Just take care of your accounts, and Navy Fed

will become your newest best friend.


BTW, if you're just looking to establish credit with Navy Fed, you might want

to consider their secured card. Use it responsibly for 6 months to create a

good track record with them, and then apply for a personal loan if you still

want one. Just a thought. Good luck!

Message 7 of 8
Regular Contributor

Re: Personal loan denied

10 days post discharge is too early for a unsecured loan. Secured loan is probably the way to go since you don't need the money.


As SteelerNYC stated, if you have auto/mortgage/student loans reporting then you really don't need a installment loan.


But if you really want one, Navy Federal is great and so is Self-Lender.

Message 8 of 8