Why Have You Been Refused Credit?
Denied credit? Find out why...
If you are wondering why you have been refused credit, then it might be because the company you applied to has deemed you as having a bad credit rating. When you apply for most forms of credit and other financial products, such as mortgages, loans, credit cards, insurance, mobile phone contracts and bank accounts, the company you apply to will determine how trustworthy you are by assessing your credit rating, using this to decide whether or not to offer you the credit or service.
If you have a poor track record of keeping up with repayments on credit cards and other bills, it is likely that your application will be declined, and the companies are within their rights to do this – they offer credit at their own discretion.
Some facts about why you might have been refused credit and what this means include:
-
If one credit provider rejects you, this does not necessarily mean they all will
-
Each company has its own scoring system
-
Scoring systems are never published
-
Credit scores can affect the interest rates you are offered
-
Credit blacklists do not exist but a bad risk for one lender could be the same for another
-
Lenders are not obliged to give credit to all that apply
If you want to know why you have been refused credit you can get a free credit report. By checking your credit report, you can be better prepared when applying for credit and if you feel details on your report are incorrect or misleading, you can challenge them, which could improve your rating. By checking your report, you can also take action against any points that you feel might be holding you back – by paying off outstanding loans, or offering explanations for any anomalies e.g. by offering a reasonable explanation to why you missed a payment. You will also be able to check if you have been the victim of identity fraud; if someone has applied for credit in your name and damaged your credit status without your knowledge you will be able to change the information on your report and improve your credit status.
Learn other ways of how to improve your credit rating.
For FREE and impartial debt advice, fill in the debt advice enquiry form and a qualified advisor will assess your individual sitaution and call you back to help you work out the best course of action.