Just because you were rejected for credit once, it doesn’t mean you’ll be rejected again.
Went for that dream job you really wanted but didn’t get it? Gutted! But we bet that you wouldn’t give up on the dream though, would you?
What if the job came back on the market six months later, when you had a bit more experience under your belt? Would you apply for it again? Of course you would!
And that same positive attitude comes in handy when applying for credit.
Just like in the job world, things change. So, just because you got a no this time, it doesn’t mean that next time you’ll get the same answer – even from the same lender.
What can change?
There are a couple of things.
It could be that your personal situation has changed, for example, you’ve:
- had a pay rise
- got a new job
- cleared some of your debts
- been working on improving your credit rating
- past financial mistakes may have dropped off your credit rating (read more)
Or it could be that the lenders’ acceptance rules have changed – sometimes they can, depending what’s going on in the financial world.
So how do I check if I’ll now be accepted, without impacting my credit rating?
When you’re looking for credit, keep an eye out for eligibility checkers – lots of lenders offer them these days and it’s usually pretty clear on their websites.
You can pop in a few details and then the checker will give you a yes or a no before you apply.
The checker does a soft search on your credit report, which means that only you’ll be able to see it on your credit report. It won’t have an impact on your credit rating at all.
If you get a yes, then great! You can go ahead and apply with confidence. If you get a no, you can try again in a few months, and protect your credit rating by not applying.
Too many hard searches can mean bad news
It’s a good idea to avoid credit products without an eligibility checker, unless you actually want to apply. That’s because these do a hard search on your credit report, which will leave a mark that anyone who checks it can see, including lenders.
Lots of marks on your report can put lenders off, as it looks like you’re desperate to borrow, so avoid if you can. Read more about this here.
How many applications is too many?
Experian, one of the credit reference agencies, say that you can make one credit application within a three month period with little or no impact to your credit report.
This can vary with the different credit reference agencies, but it’s a good general rule to go by. So, if you’ve recently applied and been rejected for credit, don’t apply for anymore just yet.
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