Being refused credit

How creditors decide whether or not to give credit
Lenders use a number of methods to decide whether or not to give credit. If you are told you cannot have credit you can apply again, either to the same company or another one. You have no right to be granted credit or to be given a reason why credit has not been granted, although some creditors may give this information.

Credit scoring
Points are awarded for such things as occupation, salary, marital status and area of residence. Credit is given if you score enough points. If you apply for credit, you must be told if this method has been used.

If your application has been refused, you can ask for the main reason for refusal and for the decision to be reviewed by the creditor. You should give the creditor any additional information that you think should be taken into account.

Credit reference agencies
A credit reference agency builds up information on your financial position from the electoral roll, county court judgments, bankruptcy details, and payment record in previous agreements. The payment record may include details of other people living at the same address, and their record may affect whether or not you are given credit.

If you have had your application for credit refused because of information on a credit reference agency’s records you can ask the creditor which credit reference agency it used. You can then get a copy of the record from the agency. You will have to pay a fee for this. You can ask for your record to be corrected if it is incorrect or misleading. If the record includes details of other people living at the same address, you can ask to be dissociated from them. You may also be able to ask to be assessed as a separate individual. There is, however, still no guarantee that credit will be given.The contact details of the main credit reference agencies are:-

Personal loans are still available to people who may have, for example, defaults or a CCJ (county court judgement) against them. However, personal loans for people with bad credit history tend to be secured loans as a result of the perceived increase in risk. Homeowner loans tend to be easier to get provided that you have equity in your property. For this reason, those with CCJs (county court judgements) or arrears or poor credit history could find it easier to apply for homeowner loans.