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Understand the reasons for rejection

Check with the lender on their reason for declining your application. Usually, banks look at your credit score to determine your repayment ability, along with your past financial habits and patterns, including any loan applications that were either approved or rejected.


Too many existing loans under your name could also affect your ability to get a new one, as could too many new applications within a short frame of time. If you’re considered too highly geared by the bank, chances are, your application will be declined.


It’s important to know that past loan application rejections will contribute negatively to your overall credit score – so it’s probably best to strategise your next one wisely.

Take steps to fix the problems

Once you know the reason for the loan rejection, you can start on building up your credit rating again. You can check on your credit rating via Credit Bureau Singapore.


Issues such as late payments on your credit card bills and loan instalments can give a bad impression to potential lenders, and will impact future applications. So try to pay these on time – you could perhaps set up an automated funds transfer to assist you with your bill payments.


If you’re considered too highly geared, consider settling some of your debts or loans that are not necessary, using methods most comfortable to you. Opt for smaller loans in general and don’t over-borrow. Smaller loans might give you a higher approval rate because the chances of defaulting on payment are lower.


A poor credit rating is not the only reason why lenders reject loan applications. Having no credit record at all makes lenders uncertain of your ability to pay.

Reapply strategically

Do your research. Compare all the different loans available and choose the one that best suits you. Online resources such as PropertyGuru’s Home Loan Pre-Approval can show you the loan amount you’re qualified for as well as the homes that match it. It also shows you your chances of getting a loan approved outside of the recommended amount. CIMB Bank’s Mortgage Loans also offer a CIMB Bank’s Mortgage Loans Calculator which you can use to your own benefit.


To strengthen your application and the lenders’ confidence in your ability to repay the loan, consider applying with a co-signer or with collateral involved, and avoid applying for too many loans at the same time.


With just a little bit of strategy involved, you’ll be on your way to owning a home soon.



Yours Truly,



Important Notes & Disclaimer

This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy amongst Singaporeans. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve everyone’s well-being. This in turn, achieves CIMB’s purpose of advancing customers and society.