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top 5 things that can stop you getting credit

Whenever you are turned down for a loan, credit card or mortgage, it’s very depressing and not much fun, but why has it happended?

Here are the Top 5 main reasons as to why you may have been rejected for credit.

Credit Reports

The credit report is the key to you getting credit, even though you may have never even seen it.

Basically your credit report is your personal finance history.

The credit report details your borrowings and your repayment track record, along with other data such as outstanding court judgements and if you are registered to vote.

Traditionally lenders use this credit report information together with your application details to decide if you are likely to repay the money, how much you can afford to borrow and what rate of interest to charge you.

So it pays for you to check your own credit report before you apply for anything, to make sure it’s up to date and correct.

 

You can check your credit report online with the help of CheckMyFile.

1. Poor Credit History

If you have a poor credit history, high debts, late payments, court judgements, these can all results in rejections for credit. Lenders see these as indicating that you may not be able to pay a new loan.

At least if you check your credit report first you can find out if it is in order before you apply with CheckMyFile.

2. Your Partner has financial problems

If your own credit report is clean and has no problems but your have a joint account such as a mortgage, or credit card with your partner and he/she has had problems then a lender will check these details as well, this could lead to a refusal for credit.

This relationship is called a Financial Association.

3. Your a credit tart!

Whenever you make an application for credit of any kind including Credit Cards, Mortgages, Loans etc you should always specify that you want a quotation and make it clear that you are not making a full application.

That is because if you go for a full application, lenders will make a full search on your credit report, which will be left on your record.

If you then apply a lot other lenders will then see these applications and think that you are overstretching yourself, desperate for money, or even that you are planning some fraud.

If when you look through your credit report, you should check to see that your application searches have not been made in error, if so contact the lenders ad ask them to change them to show that you were merely asking for a quotation.

4. You are not registered to vote

If you are not registered to vote at the address that you are using for the credit application, lenders cannot verify your identity and they may ask you additional ID or just turn you down.

Some lenders also look to see that you have lived at your current address for anumber of years.

You need to register to vote and get on the electoral roll in order to improve your chances of getting credit.

5. A lender has given you a low credit score

Your credit score indicates the risk involved in granting you credit.

Every lender uses a slightly different scoring system, so every credit application could produce a different score.

Your credit score will also change over time as your credit report gets updated. Your credit score can be between 0 and 1,000 – the higher the score the easier it is to get credit.

Find out your Credit Score now with CheckMyFile

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