If you’ve been turned down for a credit card or a loan you’ll know it can feel frustrating. But don’t despair: here are 4 things that you need to know.
1. Not all lenders are the same.
Each has its own lending criteria, so just because one has turned you down it doesn’t mean that you won’t be able to find a lender that will accept you.
2. Making too many applications for credit can damage your credit history.
When you apply for credit, lenders will usually do a credit check that shows on your credit history. Too many applications in a short space of time can count against you as it makes you look desperate for credit.
3. There’s no such thing as a credit blacklist.
Your credit history shows how you’ve managed your borrowing over the past six years. As well as showing payments you’ve made on time, it will show any missed or late payments, defaults and CCJs.
4. You can improve your credit history.
Borrowing a small amount and repaying it on time each month, and staying within your credit limit will help you build up a history of using credit responsibly. But remember, not doing so could harm your credit rating.
Disclaimer: All information and links are correct at the time of publishing.