Turned down for credit: What you can do
Getting turned down for credit can be disappointing. And if you don’t know why the lender rejected you, it’s confusing too.
But don’t panic! It’s tempting to start applying for credit blindly but this can do more harm than good. We’ll take you through the reasons why you can be turned down for credit. And if this has happened to you, we’ll explain what you can do.
Why were you turned down for credit?
When you apply for credit, lenders will credit check you. They do this using one or more of the three UK credit reference agencies – that’s Experian, Equifax and CallCredit.
The lender then works out if you match its criteria. This is specific to each lender – there’s no universal credit blacklist. So just because you were turned down for credit by one lender, it doesn’t mean they’ll all reject you.
You can be turned down for credit for several reasons – here are just a few:
- too many recent credit applications – this can make lenders think you’re desperate for credit,
- a lack of credit history – if you’ve never borrowed before, lenders can’t tell if you’re reliable,
- you have a lot of credit already – lenders could think you’ll struggle if you borrow more, or
- a poor or patchy credit history – missed payments or defaults can be warning signs.
Next, check your credit report for free. This will show you what lenders see. And if there’s anything wrong, you can start to fix this.
What can you do now?
Depending on why you were rejected, you might want to improve your credit rating. This means you could be more successful getting credit in future.
But if you’re trying to borrow to pay off existing debts or to cover your bills, more credit is unlikely to help. Instead, getting debt advice might be more suitable.
If you’re worried about money, you can get in touch with Harrington Brooks by calling 0800 048 1764. You can speak to an advisor confidentially and free of charge about a range of debt and personal insolvency solutions.
By speaking to us initially, you are under no obligation to use our services.
If you do choose one of our solutions, fees, terms and conditions will apply. There may be also be consequences including restrictions on your expenditure and on your ability to obtain future credit.
The services that we provide may be available at no cost from government and charity based providers. You can get further information at the Money Advice Service website.