Although most online lenders can provide quick loan application decisions, they still leverage automated underwriting software that digs deeply into your credit history to look for red flags that may signal a higher-than-acceptable amount of risk. These red flags can include: A pending bankruptcy case: Lenders will likely reject your application if you’re in the middle of a bankruptcy case. That’s because a judge can rule to dismiss the newly acquired debt during the proceedings, which leaves the lender holding the bag. You can often qualify for a personal loan after the judge finalizes your bankruptcy. Collections Accounts: When you stop making payments on a debt, the lender charges it off as a bad loan. Oftentimes, the lender will then sell the remainder of the loan to a debt collector for pennies on the dollar. This will be reported as a collections account on your credit report and often causes future creditors to pass on your application. Tax debts: Lenders don’t like to see applicants who have outstanding tax debts to a city, county, state, or federal government. If these debts go unpaid, the government can garnish your wages and make it hard to afford your monthly loan payment. A high debt-to-income ratio: Also known as DTI, this calculates how much of your income goes to your current debts. If you don’t have much money left over after paying your bills, a lender is likely to deny your application for more money and increase your monthly debt obligations.