Have You Been Refused Credit?

Have you tried for, and been refused, credit? Not sure why? Or, how to sort it out? We are here to help, as it’s important to understand why you refused credit before applying for more credit. This can lower your credit score and further reduce your chances of being accepted.

How Do Lenders Decide?

Lenders make an informed decision on who to lend to based upon many factors, the main being your credit score, your application, and any information they may have on you (if you are a current customer). The decision to offer you credit ultimately comes from the lender themselves, and if they have decided that they don’t want to lend you anything (for whatever reason), then no matter how good your credit is, they still may not change their minds.

If you have been turned down for credit then ask the lender why.They may not go into details, but they should provide you with enough of an overview for you to understand. You may need to ask for this in writing, but if they refuse, you should put in a formal complaint with them.

Your first step should to look at your credit score. There are three credit reference agencies; Experian, Equifax and Call Credit. Each credit score company compiles their reports in slightly different ways, so it’s worth checking all three to get a complete picture of your credit score.

Don’t sign up for their expensive monthly reports! There are cheap or even free ways to view the same information.

Check your credit score carefully, they are not perfect and you may find discrepancies on there such as debt that you have already repaid, or debts that are not actually your own. If you come across any, let the credit reference agency know immediately. They will contact the creditor concerned and update your report if necessary.

Although most negative credit information stays on your file for six years, if there were extenuating circumstances as to why you got yourself into debt, you add what’s called a Notice of Correction, this allows you to add a note for creditors to see the reason, and why it is no longer a problem. E.g. you may have been made redundant, or been seriously ill.


Being unable to repay the offered repayment is often a cause of being turned for a loan. If you’re struggling financially then getting into further debt is not the answer, talk to our trained advisers and see how we can help you get back on top of your finances.

If you are not struggling, and believe that you can fully meet the repayment expectations, then you should talk to the lender and provide them with evidence that you can in fact repay them. It may worth to have a look at your current budget.

  • Look at your last three months’ credit/bank statements.
  • On what do you make regularly payments?
  • Are the necessary?
  • Can you get them cheaper?
  • Switching utility bills can save a lot of money and should be looked at as often as you can.

Identity Problem and Fraud

If the lender believes that your application was somehow fraudulent then you can ask them to reconsider their decision, and provide them with evidence to prove that their initially suspicions were incorrect.

If you have been the victim of identity fraud then you should immediately contact the credit reference agencies and notify them of this. They should be able to clear up your credit report for you. They will ask you to provide proof of your name and address with a recent bank statement or utility bill, or copy of photo ID.