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Turned down for credit
By Rachel Williams
You don't have to be up to your eyeballs in debt to get turned down for credit. There are numerous reasons why lenders say no - for example, if you haven't held credit cards before or have just returned from working overseas, as you'll have no repayment history. Moving house can cause problems if you forget to register on the electoral roll. And a vital point to remember is that while lenders can't make judgements on issues like your race, religion, sex or address, they will have 'profiles' of ideal customers, and if you don't fit they could say no.
If you're rejected, find out why before making further applications. Most lenders will offer an indication - although they can't say too much as it will encourage fraud - and if your credit record is to blame, check it. You can get a copy for £2 at experian.co.uk. If a period of ill-health or redundancy is the cause and you're now back on track you can also get this information added.
Remember too that you can appeal to a lender, using items such as bank statements as alternative means of proving your financial discipline. If all else fails, it's always worth trying your bank. They may not offer the best rate, but they know you and your history, so they're more likely to say yes.
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