What To do If You Have Been Rejected For Credit
It can come as quite a shock to be refused credit or denied a loan whether it is your first time applying or whether you have used these type of finance facilities in the past. The first question is often why your credit has been refused.
While there are many reasons why a loan or credit application can be turned down,the most common is due to bad credit. The loan or credit provider may even state the reason for rejection being due to your credit history.
When this happens,you need to start taking steps to repair your credit score. If you’re looking for a good resource covering credit repair,a useful article to read is the complete guide to credit repair.
1. Check Your Credit Score
There are 3 major credit bureaus in the UK that record loan,credit and financial information provided by retailers,banks and other types of credit and financial providers. They keep a score depending on how you handle your credit. If you pay all your installments on time and in full,you should have a very good credit score and have no problem being approved for a loan or credit.
However,if you often make late payments or skip a payment,this will reflect badly on your credit score. Other factors such as forgetting to change your address when you move house or other personal information can also have a negative impact. You need to check your credit score with the following major credit bureaus and figure out why you have bad credit:
A credit score is provided free of charge but it is recommended to contact a credit repair expert in order to get a full credit record.
2. Analyse The Credit Record
You need to go through every item on your credit report and look for the following:
– Any mistakes made by your creditors or by the credit bureau.
– Any mistakes that you have made such as providing incorrect information.
– Credit that is outstanding,where you have fallen behind on your payments or if there is a judgement in your name.
– Fraudulent activity on any of your accounts.
If you are having trouble analyzing your credit report,contact a credit repair provider for free advice for assistance.
3. Repair Your Credit Record
Some repairs are much easier to make than others to ensure that your credit score meets the requirements to be approved quickly and easily for a loan or credit.
– Correct any incorrect personal information with the credit bureaus.
– Contact your credit providers and update your personal information with them.
– Payback any credit or loan installments that you have fallen behind on.
– Repay bad debt and find out what you can do to have a judgement removed from your name.
– Report any fraudulent behaviour to the police,the credit bureau and the creditor in question.
For more information on how to repair your credit score for quick and easy approval for loans,credit and other types of finance,read the full guide on how to repair your credit record.