- Given the reason?
No reason given
- Ask the lender.
Under the Lending Code, which most banks, building societies and other financial services organisations subscribe to, lenders should give you the main reason/s why they have declined your application.
Main reason is...
Adverse data on credit report
- Get report from a credit reference agency
Check for discrepancies (e.g. Past debt/s not shown as paid):
- Yes: Raise
- No: OK
- Explain circumstances using Notice of Correction.
A Notice of Correction is a short (200 words max) explanatory note you can add to an entry on your credit report to explain the background to that information. Anyone searching your report in the future or who has seen it in the previous six months will see the Notice of Correction, and they must take account of it when you apply for credit.
- Wait for score to improve through time or use a matching service e.g. Experian CreditMatcher to source appropriate deal
Legal issue or policy rule
- Get guidance from lender or credit reference agency on next steps
- Review budget: income vs. spending
Not seriously struggling
- Pay down existing debt
- Reapply using Credit Matcher
- Discuss with Lender/credit reference agency
Credit score too low
- Check report from a credit reference agency
Credit reference agency discrepancies
- Dispute & Resolve
No credit reference agency discrepancies
- Check credit reference agency guide score
Great guide score
- Go back to lender and appeal.
Under the Data protection Act you have the right to challenge a decision reached purely on a score, by asking for the lender to review your application manually.
This also gives you the opportunity to argue your case, if applicable, by providing additional supporting information such as proof of regular bill payment (not included in your credit report).