Denied a Loan in Vegas Here’s Why

A Loan or a credit is a contract in which a borrower receives the money and agrees to repay the lender at some date in the future with pre-defined interest. ‘Credit Denial’ is the rejection of a loan application by the lender. Your loan can be denied if the lender perceives your ability to repay it is a risk. If you are denied after applying for Las Vegas personal loans, The Equal Credit Opportunity Act guarantees that you must receive a reason for your rejection.

Creditworthiness is a process conducted by lenders that determines the possibility that a borrower may default on his loan obligations. Creditworthiness is decided based on the factors such as credit score and repayment history. Las Vegas lending institutions also consider the assets and the liabilities of the borrowers to determine the probability of default.

Financial institutions attempt to mitigate the risk of lending to borrowers by performing credit analysis on individuals applying for a loan. This process is based on a review of five key factors that predict the probability of a borrower defaulting on his debt. Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral.

Reasons for Denial of Credit in Vegas

Low Credit Score

A bad credit score is one of the crucial reasons for denial of the credit. Creditworthiness can be evaluated through credit score of an individual which is a statistical number and is calculated by credit rating agencies based on individual’s credit history. A credit score is used to evaluate the chances of default on the principal and interest payments. Your credit score can be from 300 to 850 and the higher the score, the more creditworthiness the individual is considered.

Low Income & Less Fixed Assets

It is evident that people with high income are considered more creditworthiness as compared to people with low income. Also if an individual has substantial fixed assets such as property, then chances of a loan being approved are comparatively more.

High Existing Borrowings

High existing borrowings indicate more chances of default due to huge principal and interest liability. It is mandatory to share the details of the current borrowings with the lender while applying for recent credit. If you’re currently burdened with a payday loan in Las Vegas with no credit check, this could give a lender cause to reject your application for new borrowing.

No Collateral or Security

Collateral or mortgage is an asset that a borrower offers as a way for a lender to secure the loan. If you are not able to pay the installments, then the lender can seize the collateral to recoup its losses. Mortgage-backed loans have lower interest rates associated with them and can be approved quickly.


Las Vegas loan applications typically requires a lot of documentation such as credit scoring document, identity proof, address proof, guarantor’s information, details about existing borrowings, etc. If you don’t submit the needed documentation, your loan will be denied. Denial can also be issued if you provide wrong information.