When you apply for credit, lenders want to feel confident that they can easily identify you, that you are responsible with your finances, and that you will reliably make repayments according to an agreement.
There are a number of reasons why you may have been rejected:
- You don’t meet the lender’s criteria
- You have a poor credit score
- There is a mistake on your report
Whatever you do, don’t immediately apply for another credit account – this will decrease your credit score.
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 may be helpful to do:
- Read through your credit report and try to find reasons why you may have been turned down.
- Check the information on your credit report is up to date and accurate, particularly your address history and financial associations. At ClearScore, we show you your credit report provided by Equifax. This is updated once a month. If there is information on your report that’s more than 4-6 weeks out of date, you’ll need to contact the lender or fill out a dispute form to send to Equifax directly: raise a dispute
- 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.
- Contact the lender that rejected your credit application as they may be able to provide more information on why it was unsuccessful.
For more information about credit reports, scores and applications, visit our Learn section.