Turned down for credit - don't panic

MyCallcredit is warning people who've been turned down for credit not to despair but to check their credit report before applying to another lender.

MyCallcredit director, Alison Nicholson says:

"People shouldn't panic if they are rejected by a lender - lots of people are turned down for credit but that doesn't mean they have to resort to lenders who charge uncompetitive rates. It may be that your credit profile simply doesn't suit that particular lender - another lender may look at the application more favourably."

Ms Nicholson recommends that people who have been turned down for credit shouldn't apply for any more credit until they have checked the state of their credit file.

"The best way to get an idea of how a lender will view you is to look at your credit file and obtain a credit score. If your credit file is clean and your credit score high then you should be able to choose the best deals on the market when you want to borrow.

If you have a couple of negative markers on your credit file you might not qualify for the very best deals but it doesn't mean you will only qualify for the worst.

But if you have an adverse credit history and your credit score is low this could be an indicator that you can't afford more borrowing and need to get your existing debts in order before you apply for any further credit."

MyCallcredit has listed some positive and negative credit markers. But the list isn't exhaustive and will vary from lender to lender.

Positive credit markers
  • Being at your current address and on the electoral roll for a number of years.
  • Being in continuous employment for a number of years
  • Paying existing credit commitments on time
  • Being a homeowner
  • Having a small number of existing credit facilities
  • Having a low income to debt ratio
Negative credit markers
  • County Court Judgments
  • History of not making debt repayments on time
  • Inconsistent address and employment history
  • A large number of searches performed on your credit file