Have You Been Refused Credit?
Have you been turned down for credit and wondered why? No-one has an automatic right to credit. Before agreeing to extend a loan or mortgage, most banks, credit cards, and finance lenders will check your credit report first with a credit reference agency. If you are refused credit the credit reference agency will not be able to tell you why - it is the lender who looks at your credit report and makes a decision. The lender, not the credit agency, will decide if you are an acceptable risk. The lender does not have to tell you exactly why they turned you down, although they should be able to give you an idea. If they have refused credit because of something on your credit report you have the right to see your own credit files and you can see the information for yourself. If there is an error or misleading information on your file you may be able to ask the lender to reconsider your application once you have rectified the problem.

Improve Your Credit Rating
How can I improve my credit rating? You do not have just one overall credit rating as each lender will have their own method for interpreting the data available to them. This is called credit scoring, and each lender will give you a credit score based on your credit report. However, there are some things that could influence how much of a credit risk you may appear. You should be listed on the Electoral Roll because this may give the lender more confidence that the address you have given is really where you live, and this will be confirmed in your credit report. If you have only been at your current address a short while, it helps if you were on the Electoral Roll at your previous addresses. Lenders may be understandably reluctant to lend if it appears that you have no traceable history or if you appear to move address frequently. Having a connected telephone number for your name and address is evidence of at least one regular bill that you are clearly paying within acceptable terms. If you have no county court judgments or bankruptcy registered against you at your current or previous addresses this is a positive factor. If you have any credit agreements, especially credit cards, your credit report can show how promptly you pay regular monthly accounts. If you regularly and consistently make all your payments to terms this can give other lenders more confidence. Paying by Direct Debit can help you to avoid accidentally being late with a payment, for example because you are away on holiday. Keeping your credit file clear of overdue payments and having all the correct information on your credit report will help you achieve a better credit score with most lenders.