Denied a Personal Loan? Use this Reconsideration Letter

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Writing a personal loan reconsideration letter is a way to ask a lender to reconsider their decision to deny you a loan.

The letter should be well-written and professional, and it should include specific details about your financial situation and why you believe you should be approved for the loan. 

Here is a sample of a personal loan reconsideration letter:

sample personal loan reconsideration letter

[Your Name]
[Your Address]
[City, State ZIP Code]
[Email Address]

[Today’s Date]

[Lender’s Name]
[Lender’s Address]
[City, State ZIP Code]

Dear [Lender’s Name],

I am writing to request reconsideration of my application for a personal loan. I recently applied for a loan in the amount of [$amount] and was disappointed to learn that my application was denied.

I understand that my credit score may have been a factor in the denial of my loan. However, I would like to bring to your attention that I have recently taken steps to improve my credit and have made a significant effort to reduce my debt.

I have also been able to secure a steady source of income, which has allowed me to improve my financial stability. I am now in a better position to make loan payments on time and in full.

I understand that my application may not have presented my current financial situation in the best light and I would like to apologize for any inconvenience this may have caused.

I would be grateful if you could reconsider my application and take my current financial status into consideration. I am confident that I will be able to repay the loan as agreed.

Please do not hesitate to contact me if you have any questions or need any additional information. I look forward to hearing from you.

Thank you for your time and consideration.


[Your Name]

It is important to note that in order to convince the lender to reconsider your application, you will need to provide specific and relevant information about your financial situation and why you believe you are a good candidate for the loan. 

Additionally, make sure to include your contact information and to proofread your letter for spelling and grammar errors before sending it.

Also Remember the lender may not have the chance to reconsider again, so you must make sure that your letter and the follow up provides them the most information and best possible case to reconsider.

Here are some questions that people often ask about personal loan reconsideration:

How long should you wait to reapply for a personal loan?

There’s no set time period for how long you should wait to reapply for a personal loan after being denied, but it’s generally a good idea to wait at least a few months before reapplying. This gives you time to work on improving the factors that contributed to your initial denial.

If you were denied because of a low credit score, for example, you can work on improving your credit by paying your bills on time, keeping your credit card balances low, and disputing any errors on your credit report. These steps will help improve your credit score over time, making you a more attractive borrower to lenders.

If you were denied because of a high debt-to-income ratio, you can work on paying down some of your existing debts to lower that ratio.

If you were denied because of a lack of income, you may consider looking for a job, or finding ways to increase your income.

It’s important to understand why you were denied for the loan and take steps to address the underlying issues before reapplying. Once you have made progress in addressing the reasons why you were denied, you can consider reapplying for a personal loan.

Keep in mind that some lenders may have a waiting period before you can reapply, so be sure to check with the lender or with loan officer or advisor before doing so.

Also it’s worth mentioning that, reapplying for a loan multiple times over a short period of time can have a negative impact on your credit score, since each application counts as a hard inquiry. So, it’s good to be prepared as much as possible before applying.

What disqualifies you from getting a personal loan?

There are a number of factors that can disqualify you from getting a personal loan. Some of the most common include:

1. Poor credit history: Lenders use credit scores and reports to assess the risk of lending money to a borrower. If you have a low credit score or a history of missing payments, it may be difficult to qualify for a loan.

2. High debt-to-income ratio: Lenders also look at how much debt you already have compared to your income. If you have a lot of outstanding debts or other liabilities, it may be difficult to take on more debt.

3. Lack of income or employment: Lenders want to know that you have the ability to repay the loan. If you are unemployed or have a low income, it may be difficult to qualify for a loan.

4. Recent bankruptcy or foreclosure: If you have recently gone through a bankruptcy or foreclosure, it may be difficult to qualify for a loan as these events may be seen as a major negative on credit report and seen as high credit risk

5. No credit history: if you haven’t built a credit history yet, it may be difficult to qualify for a personal loan.

6. The Purpose: some lenders may have specific loan products for specific purposes and if the requested loan does not fit with their lending criteria it may be difficult to qualify.

It’s worth noting that these factors can vary depending on the lender, the loan product, and your individual circumstances.

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