Home > Credit and Store Cards > What to do if You are Rejected for a Credit Card

What to do if You are Rejected for a Credit Card

By: Chris Nickson - Updated: 3 Dec 2012 | comments*Discuss
 
Consumer Right Credit Card Rejected

It can seem crushing if you're turned down for a credit card. After all, it's a reflection on your finances and ability to pay your bills. These days, even people with excellent credit are being turned down for new cards, as companies tighten their lending rules. But if you're turned down, you can take action to make sure it doesn't happen again.

You could have been turned down because your debt to income ratio doesn't meet a company's requirements on their credit check, or personal information on your credit report might be incorrect.

If you're declined credit, the lender should tell you the main reason for this. You have the right to know whether their decision was based upon a credit score, information held on your credit file or on the lender's own specific policy. If the decision was based on your credit report, the lender should tell you the name and address of the credit reference agency they used.

Your Credit File

If you've been declined credit because of information held on a credit file, you need to obtain a copy of the file. You can obtain it for £2 from the credit reference agencies. Your credit file includes all the information that any company you apply to may see and will help you to establish why your application was refused. However, it won't list the reason your application was declined.

Examine your credit file carefully. If there's incorrect information, you can challenge it.

If you've had a County Court Judgement against you that you've paid, make sure your credit file shows it as satisfied. If it's not shown that way, contact the County Court and obtain a Certificate of Satisfaction. All credit reference agencies will be notified of the change within four weeks.

If you believe a judgement has been incorrectly registered, contact the court in question.

If you've discharged a Bankruptcy Order or had it annulled and it doesn't show on your credit file, send a copy of the Order of Discharge or Annulment to all the credit reference agencies and ask them to update your report.

You might have an account that's been paid but this information isn't shown on your credit file. If so, contact the company concerned and ask them to make the necessary changes.

If your report shows you with an address with which you have no connection, contact the company that added the information and ask them to delete it.

You have the right to put in an explanation or notice of correction to the information that is held in your credit file, such as a short explanation as to why an account of yours fell into arrears at a particular time. Any lender who sees the entry to which it relates will also see the notice.

It's worth checking your credit file annually to make sure all the information is current and accurate.

In Addition

If you're not registered on the Electoral Roll, contact your local authority and request that they add it. The credit reference agencies will amend the details once they've been notified by yourself or the relevant local authority.

Other people in your household might have County Court Judgements or late payment histories. If those are recorded on your credit file you can ask for their financial connection to be removed, unless you share outstanding joint accounts or judgements. All the credit reference agencies will make these changes.

Wait six months after correcting your credit file before re-applying for the credit card for which you were rejected. Each application you make will result in a search of your credit file. These searches will be registered and could affect future applications.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Latest Comments
  • ConsumerRightsExpert
    Re: Dealing With Cowboy Builders
    Paulio - Your Question:Back in 2010 we had a loft conversion done, by what looked like a reputable company who were local and had…
    20 October 2017
  • Unhappy
    Re: When Am I Not Entitled to a Refund?
    With reference to my previous comment, no it was not made to measure. The website offers items made to order in set sizes…
    20 October 2017
  • ConsumerRightsExpert
    Re: When Am I Not Entitled to a Refund?
    Unhappy - Your Question:On 1st September I ordered some handmade clothes for my baby. They arrived on 19th October…
    20 October 2017
  • Unhappy
    Re: When Am I Not Entitled to a Refund?
    On 1st September I ordered some handmade clothes for my baby. They arrived on 19th October (website states 4-6 week…
    20 October 2017
  • amyamyamy
    Re: Dealing With Cowboy Builders
    Dean blues. Must the the UK's most dangerous and prolific cowboy builder. Joi the facebook group against him and help stop this…
    20 October 2017
  • Russo
    Re: What If Your Plumber Makes Mistakes?
    Had a new shower tray fitted on 9 November 2016 and last week a crack appeared In the tray running from the door towards…
    19 October 2017
  • Kellywalsh
    Re: Buying a Used Car: Your Rights
    I bough 11 c4 7 seater 10 months ago paid 13900 he gear box and fly wheel has gone do i have any come back ?
    18 October 2017
  • Paulio
    Re: Dealing With Cowboy Builders
    Back in 2010 we had a loft conversion done, by what looked like a reputable company who were local and had excellent reviews…
    18 October 2017
  • Sally
    Re: The Structure Warranty on My Sofa?
    DFS have come to my house so times the leather was patchy so they couloured it in finally they recovered the seats on my 2…
    18 October 2017
  • ConsumerRightsExpert
    Re: What If Your Plumber Makes Mistakes?
    Sam - Your Question:Hi. We have received a water bill from Thames water for £12k and been informed by them that there is…
    18 October 2017
Further Reading...
Our Most Popular...
Add to my Yahoo!
Add to Google
Stumble this
Add to Twitter
Add To Facebook
RSS feed
You should seek independent professional advice before acting upon any information on the ConsumerRightsExpert website. Please read our Disclaimer.