The current financial crisis has meant that it is much harder for people to get credit because the banks, mortgage and credit card companies are more worried than ever that they will not get their money back. Although the government has requested that the banks resume giving credit, it has not had much effect on the lending process. More people are being refused credit, not because there is a problem with their financial history, but simply because the lender does not want to take on the risk. Usually, however, when a bank, mortgage or credit card company turns down your request for credit it could be because you have an unfavourable credit report.

You may be mystified when you are turned down for a mortgage, car loan or personal loan because you are not in serious debt. If this has happened to you then you should get a copy of your credit report. Credit bureaus do make mistakes on people’s credit reports, it could be that an old debt that has since been paid is showing as outstanding, or your credit report could have been confused with someone else who has the same name. If you get a copy of your credit report and find that there are some mistakes then you need to write to the credit bureau pointing out those mistakes and asking them to rectify the problem. Sometimes it can take two or three letters before the credit bureau responds to your request and removes the mistake from your report.
 

When you apply for a loan, credit card or other form of credit, the first thing that your prospective lender will do is to check your credit report. If they find that your credit report is not as good as they expect then you will more than likely be refused credit. One thing you should not do if you have been refused credit, is to go directly to another lender. When someone refuses to give you credit and you don’t know the reason, then the first thing that you should do is to get a copy of your credit report. If there are no mistakes on your credit report and you are not in any debt, then the problem could be down to the number of times in a certain period that you have applied for credit.

Credit Bureaus compile the information that they have on you from a number of different sources including the electoral role, because that tells them how long you have been at your present address. Once the bureau has gathered this information it then gives you a credit score based on that information. Very often, if lenders are not happy with your credit information, then they will refuse you credit and you may have to go to a lender that charges high interest rates in order to get a loan or other form of credit.