Help with Finances or Debt

Have you had a loan application declined?
KCB - like all regulated financial firms - is required to be a responsible lender and take affordability into account when lending money. This means that we are required to take a lot of things into consideration when making a decision on a loan application.

We work hard to try and help Members when they apply, but sometimes it really wouldn't be in the Members financial interests for us to provide that loan. This page is designed to help people to understand how they can improve their chances of securing a loan when they apply.

Will KCB tell me exactly why my loan application wasn't successful?
We provide a brief explanation in the e-mail to advise of our decision. In a lot of cases, there may be multiple factors involved, with some being more important than others. We work hard to be objective and fair in every loan application assessment, and we do not judge Members on their financial status or how they spend their money.

Sometimes, we need to comment on key risks in order to try help the Member. For example, gambling is perfectly legal in the UK, lots of people do it and we lend to many people who gamble. But, for some Members, the regularity, value of bets, level of winnings and impact on other bill payments represent a high risk that a loan from us may put that Member into a worse financial position. As a responsible lender, we wouldn't be able to lend in those circumstances.

Reasons for not being able to approve a loan application
Below is a list of the main reasons that we provide for declining a loan application, with some brief things to consider to improve your chances of an approval next time:

• Eligibility - this is surprisingly common despite our Lending Policy setting out the eligibility criteria. Commonly, this is new Members asking for loans greater than £500 without having savings with us, Members asking for 'top-up' loans when they haven't repaid enough towards their existing loan and not adhering to previous loan agreements. Considerations: Length of membership, saving regularly and good savings balances will make top-up loans much more accessible when you need them. Read the Lending Policy for information on when we simply can't lend to some people (for example, being in a Protected Trust Deed or Debt Arrangement Scheme and so on).

• Affordability - this is the most common reason we cite. Simply, it means that if we gave you the loan, the cost of repaying the loan, alongside all of your other commitments with your recent levels of income, we'd be putting you in a worse financial position. Considerations: Increasing income or reducing expenditure are the things that will help here. This could include things like waiting until another loan, credit card balance or hire purchase agreement has been paid off. Finding savings in outgoings, reducing some of the less essential expenses and trying to avoid overdrafts, exceeding credit limits etc. will also help greatly. Also, working hard to save regularly can demonstrate that your financial position is improving and will reduce risk for lenders.

Help with Household Bills and Managing Money

We've put together a list of resources to try and help our Members to save money, manage their money and reduce any debt they might have.