In this work we study finite density effects in spontaneous chiral symmetry breaking as well as chiral phase transition under the influence of a background magnetic field in $ 2+1 $ dimensions. For this purpose, we use an improved holographic softwall model based on an interpolated dilaton profile. We find inverse magnetic catalysis at finite density. We observe that the chiral condensate decreases as the density increases, and the two effects (addition of magnetic field and chemical potential) sum up decreasing even more the chiral condensate.