Five Reasons for Refusal of a Personal Insurance

Wouldn’t you like personal finance to be a mandatory college course? Unfortunately, many of us learn by mistake. When you need a personal insurance and get rejected, you may feel confused about what went wrong – and how to fix it. Here are some clues.

no credit

No credit is a situation where you have never used credit and therefore do not have a credit history for the bank to review. They have no way of making an informed decision about whether or not to pay off a personal insurance based on your credit history. There is no credit worse than bad credit. Qualifying for these types of introductory credit and making regular payments on it can overcome the “no credit” score:

Student insurances

Secured credit card (includes down payment)

To be added to good credit for the parent or spouse: card, car insurance, etc.

low credit

Low credit takes many forms. If you use more than 30% of your allowed debt, it can negatively affect your score. Also, too many inquiries from shopping for insurances will affect you greatly. Loopholes, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at is whether or not you have significant assets if you default on the insurance. They also check to see if you have a variety of debts or if you only carry one type of debt.


Proof of income is generally required when applying for a personal insurance. If you are unemployed or partially unemployed, it can work against you in the insurance approval process. Lenders may also ask for a work history to find out how long you’ve been with your current employer, and to determine if you normally have job stability. A job loss or frequent change of credit will tell the creditor that your payments may not be reliable.

The purpose of the insurance

Believe it or not, your application can be rejected because of your proposed purpose for the insurance. Financial institutions have the right to set criteria surrounding their payments and can accept or reject your request based on what you want the funds to be used for.

Black list

If you’ve defaulted on debt before, your name may be put on the People Who Don’t Lend List, also known as a “blacklist.” This will follow you for a long time and is difficult to erase. If you resolve debt issues, obtain documents to prove the solution.

No credit check insurance

If you need a insurance now, but are worried that you may not qualify for a personal credit line, you can qualify for a insurance without a credit check. You could be on your way to a better financial future in no time!