When you apply for credit, lenders want to feel confident that they can easily identify you, that you’re seen to be responsible with your finances and that you’ll reliably pay them back according to the agreement.
Due to this, there are a number of reasons why you may have been rejected for credit this time around.
Here are a few of the main reasons:
• You don’t meet the lender’s criteria
• You have a poor credit score
• There is a mistake on your report
If you have been rejected for credit, whatever you do, don’t immediately apply for more credit, as by doing so will likely decrease your credit score further. This is because there will be another credit search added to your report.
Multiple searches on your report in a short space of time can suggest that you are relying on credit and might struggle to pay it all back. This might not be the case in reality, but it is how it can appear to lenders.
Even people with the highest credit scores can get turned down for credit. The score is only a guide, and is not a guarantee that your credit applications will be successful.
Here are some things that might be helpful to do:
• Read through your credit report and try to find reasons why you may have been turned down.
• Contact the lender that you applied to for credit, as they may be able to provide more information about your application and why it was unsuccessful.
• Check the information on your credit report is up to date and accurate, particularly your address history.
At ClearScore, we show you your credit report provided by Experian. This is updated once a month. If there is information on your report that’s more than 60 days out of date, then you have the right to challenge and dispute this with Experian.
You can give them a call on 0117993403.
The banks and lenders will be using similar information about you to make their decision so it is important to make sure this is all accurate.