Frequently asked questions

We understand how frustrating it can be to have your loan application declined. The decisions we make are based on the information you give us, plus standard checks that help us lend to you responsibly. That means making sure a loan won’t put you under financial pressure now or in the future. 

You’ll find more details in the decision email we sent when your application was reviewed. If you can’t find that email you can email our Lending team at lendingteam@gwcu.org.uk for more information. 

Here are a few reasons why a loan may be declined: 

1. Your credit history or score doesn’t meet our lending criteria 

We review your credit file as part of your application. If it shows recent missed payments or other concerns, we may not be able to lend. As a responsible lender, this helps us make sure any loans we provide are manageable and don’t add to financial pressure — either now or in the future. 

Our lending criteria are designed to support responsible borrowing and protect the wider membership. 

What to do next: 
You can check your credit file for free with most credit reference agencies. If your credit score needs improving, we’ve put together this guide to help you get started. 

2. Your loan doesn’t appear affordable right now 

If your income and expenses suggest you’d struggle to make repayments, we won’t offer you a loan at this time. This might be because your monthly outgoings are too high, your income isn’t stable, or you already have existing debts to repay. 

What to do next: 
You may be able to apply again in the future when your finances improve. When you do re-apply, make sure all the information you provide is accurate and up to date. 

3. We are unable to lend based on financial activity 

We may decline a loan if your open banking data shows signs of financial difficulty or instability. This could include things like frequent overdraft use, returned payments, or other patterns that suggest it might be hard to keep up with repayments. 

What to do next: 
Taking time to review and manage your finances now can make a big difference when reapplying later. We suggest checking your credit report with credit reference agencies such as Experian for a more detailed look.  

4. You don’t currently meet our lending criteria 

We assess every loan application against our lending criteria, which includes things like your credit history, residency status (such as being on the electoral register), and our basic identity checks. 

If you don’t meet these criteria, we may not be able to approve your loan. 

What to do next: 
The email we sent when your application was assessed will explain more. If anything has changed, or if you think we’ve made a mistake, please email us with the details and we will review. 

5. Your total debt is already high 

We may decline an application if you’re already repaying a high level of debt, have obtained a number of creditors in a short time or have high revolving credit usage. Adding to that could put you under more pressure and that’s not something we’d ever want to do. 

What to do next:

If you’re finding things tough, we may be able to help, or point you in the right direction. For free, confidential advice, you can also speak to organisations like StepChange or the National Debtline.

6. You’ve had an IVA, DRO , bankruptcy or debt management plan

If you're currently in a formal debt arrangement, like an IVA, DRO, bankruptcy or DMP, we won’t be able to lend to you right now, due to our responsibility to avoid putting our members under more financial pressure. 

You may be able to borrow with us again once these have been settled but there may be limits as to how much you can be considered for in the future. 

For more information, you should always read the email you received when your application was reviewed. For any questions you can email the lending team at lendingteam@gwcu.org.uk