What to do if
you have been refused credit
If you have applied for a loan and
been refused they usually don't tell you why. This can
make all the difference in you obtaining a loan and
it definitely helps to check that the credit data held
for you is factual!! Fortunately there is now help at
hand online:
Refused credit?
Different lenders specialise in different types of business,
so being turned down for credit by one lender does not
necessarily mean there is anything wrong or that you
will be turned down by others.
On the other hand, mistakes do happen and you might
be wrongly refused credit because of an error on your
credit file. If a lender turns you down, you have the
right to know whether the lender consulted a credit-reference
agency and, if so, which one. It could be worth checking
the file. Common mistakes include:
• A discrepancy in your address which makes it
look as if you’ve given a false address
• An incorrect assumption that you are financially
connected to someone at the same address who has a debt
problem
• Your file showing a previous occupant who had
debt problems as still living at your address
• Incorrect information from another lender –
for example, showing as outstanding a loan you have
already paid off or showing as an unpaid debt mail-order
goods that you’d refused
• Someone may fraudulently have used your name
and address to apply for credit, causing a large number
of credit checks against your file and bad debts in
your name.
You can check the credit file kept
about you by each credit-reference agency by contacting
the agency and paying a fee to see each file. You have
the right to correct any mistakes on your file –
the credit-reference agency will tell you how to do
this.
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