REFUSED CREDIT LOAN APPLICATION

Normally, the borrower is told the reason why he/she has been denied credit. This could be for a number of reasons - either a low credit score or other rules and regulations adheared to by that particular agency. If you think everything is OK and you are being denied credit on account of a credit report then you are entitled to know the details of the agency lender used and apply to the agency for a copy of the report usually at a cost of about £2.00.

Your credit report: Know it all
It can sometimes be useful to ensure that you have a record of your credit report prior to applying for a loan or credit. Your credit report essentially contains data which will make you eligible for credit from a loan company and also contains the data that you are required to produce for obtaining a credit. However, the report will not notify you of the reason as to why you are being denied credit from a particular company, it simply presents a financial history on which the loan company will base its decision. The loan compnay will keep this inforrmation and will able able to explain why credit has been refused.

I was refused once. What should I do now?
As a rule, if you were denied credit previously, do not suddenly make multiple applications to different companies as this will only reflect badly on your credit report. The best way to improve your credit for the future, is to find out why you’ve been refused and then work on a solution for fixing or improving your credit history. Firstly, if you have paid a county court judgement (CCJ), make sure that this is reflected on your credit report. If this has not been recorded correctly, then by all means, get the necessary documents and a certificate of satisfaction from the court to prove the debt has been paid.

This information will be passed to all credit reference agencies and if you feel there has been a mistake don’t feel embarassed about questioning the credit agency. Ensure that you update your credit history from time to time and the unsecured loan company is using your most recent one. If an insolvency order has been negated, it should also show on your credit report. Similarly, for payments made for credit accounts which are not updated, inform the respective authorities and request them to make the necessary changes at the earliest possible. A credit company might launch a search for your credit report more than once even though you have applied once, in this case it is imperative that you inform them about their error and get it rectified immediately.