What are the reasons for credit applications to be turned down?

Here are some common reasons why people get turned down for credit:

1. It’s worth noting that all lenders make their decision, it’s not any of the credit reference agencies. Every lender has a differing criteria and a number of requirements – there’s no universal grade to achieve to pass for credit scoring, so you should ask the lender why you were turned down.

2. If you haven’t registered on the electoral roll, which means the lender couldn’t confirm your identity and address or if you’ve changed your name or address recently and didn’t make the lender aware on the application form.

3. Your credit history isn’t substantial enough also sometimes referred to as having a “thin credit file”. Lenders like to see history of successfully repaid credit. If you haven’t taken credit before, or if you’re new to the country, there might not be enough data for lenders to approve you

4. Evidence of late or missed payments, defaults, or county court judgments in your credit history. These may indicate you’ve had trouble repaying debt in the past.

5. You have an Individual Voluntary Agreement [IVA] or Debt Management Plan. This might suggest that you can’t afford any more debt at the moment.

6. Multiple credit applications in a short space of time willl also show a red flag, as it could suggest you’re in financial trouble.

7. There was a genuine mistake on your application form which means that you could not bbe traced or authenticated.

8. You’re financially associated with someone who has a bad credit history.

9. Your employment history. If you have a number of short term jobs which may show instability of employment and a potential for being out of work in the future.

It also helps to get a copy of your Experian Credit Report – check it for accuracy and anything listed above.