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 the 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 damage your credit score.
Even people with the highest credit scores can be turned down for credit. Your score is only a guide, and is not a guarantee that your credit application will be successful.
Here are some things that might help:
- Read through your credit report and try to find reasons why you may have been turned down (such as incorrect information or missed payments).
- Check the information on your credit report is up to date, 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 If there is information on your report that’s more than 4-5 weeks out of date, you’ll need to contact the lender or fill out a dispute form to send to Equifax.
- Contact the lender who rejected your credit application, as they may be able to provide more information on why it was unsuccessful.
- If your credit score isn’t as high as it could be, follow our 10 simple steps to a better score before you apply for credit again.