What should I do after being denied a personal loan?

The adverse action notice is your roadmap: Federal law (ECOA, FCRA) requires lenders to tell you the specific reasons for denial within 30 days. Common denial reasons and what they mean: 'Too many delinquencies' - late payments on your report; focus on making all current payments on time before reapplying. 'Debt-to-income ratio too high' - your monthly debt obligations are too high relative to income; pay down existing balances or wait until balances fall naturally. 'Insufficient credit history' - too few accounts or too new; build with a secured card or credit-builder loan. 'Credit score too low' - the lender's minimum FICO was not met; check if other lenders have lower minimums. 'Income insufficient for requested amount' - ask for a smaller amount that your income can support.

Free copy of credit report: If denied partly due to a credit report, you have the right to a free copy of that report from the bureau cited in the adverse action notice. Review it for errors - incorrect late payments, accounts that are not yours, balances that do not match. Dispute errors with the credit bureau directly (equifax.com, experian.com, transunion.com).

Reapplication strategy: Wait at least 3-6 months before reapplying to the same lender (denials are sometimes tracked). Try lenders with lower credit score minimums: credit unions (often more flexible), online lenders focused on near-prime borrowers (Avant, OneMain Financial for poor credit). Consider a co-signer with stronger credit. Apply for a smaller amount - some borrowers are approved for less than requested.

Avoid: Applying to multiple lenders simultaneously (multiple hard inquiries in a short window without rate-shopping protections can hurt your score). Applying with predatory lenders who approve everyone at triple-digit APRs.