1 in 5 people who applied for credit over the last year were turned down
That's a lot of people. And the vast majority of these were turned down because of their credit history.*
To help make sure you don’t fall into next years’ statistics, follow our tips to boost your chances of being accepted. And we’re not talking the usual ‘make your payments on time’ stuff, as that goes without saying. Here we go:
1. Stop applying! Yes, really!
For a little bit anyway. Each time you apply for credit, many lenders do a ‘hard search’ on your credit report. And this will leave a mark on it that shows you’ve applied.
If you have lots of these marks on your credit file, it can make you look like you really need the cash. And that’s a big no-no when it comes to getting accepted.
To lenders, lots of these marks can look like you’re desperate and you aren’t too bothered about where the money comes from. As you can imagine, that may put them off. So, apply wisely.
2. Stay up to date
An out of date credit report can also harm your chances of being accepted. If a lender checks your report to make sure you are who you say you are and see that the addresses listed on it don’t match the one you gave on your application, they’re going to question why.
3. Get rid of anyone that could be dragging you down
When you check your credit report, you may see that other people’s names appear on it. This means that you’re financially linked with that person, so you will have, or have had, joint credit with them at some point. It could be a bank account, loan, mortgage or any other type of financial contract.
If you’re no longer connected, or if the other person has bad credit, it’s best to unlink yourself. That’s because lenders will look at their credit report when you apply for credit and will take how they manage their money into consideration when you apply to borrow.
As long as you no longer have the joint debt, you can close the account down and request a notice of disassociation from the credit reference agencies. This will unlink you for good (unless you take out credit with them again in future, of course).
4. Fix mistakes
Mistakes happen – credit reference agencies and banks are only human after all. That’s why it’s good to regularly check your credit report to make sure everything is as it should be.
It could be a missed payment that you definitely paid, a CCJ that you settled on time, or a financial connection that you’ve never heard of – whatever it is, get it fixed. All you need to do is contact the credit reference agency. Read more about it here.