Credit Rating Guide

Been refused credit and don't know exactly why?

There are many reasons why you may be declined for a loan, but it is likely to be due to your credit rating. When you apply to a lender, they access your credit file with the Credit Reference Agencies to assess your credit-worthiness.

How Credit Scoring Works

Below are some of the ways in which a lender will give you a score to decide whether or not they will lend you money for a large purchase such as a vehicle loan. Reasons you may be declined include:

• No electoral roll information
• County Court Judgements (paid or unpaid)
• Defaults and missed payments (paid or unpaid)
• Repossessions
• Family Adverse Credit
• Poor payment history on any accounts (present and past)
• Multiple address links
• Multiple links with other people
• Incorrect or out of date information
• Multiple Credit Searches
• CIFAS warnings

Further factors that a lender may take into account when deciding on whether to grant you a loan are:

	Excellent	Good	Fair	Poor
I have been resident in the UK for at least the last 3 years
I am aged between 21 and 65
I have obtained credit at my current address
I am on Voters role at current address
Up to date on Mortgage payments
I have Credit cards within the spending limits
I have Missed no credit card or loan payments within last 12 months
I never exceed my overdraft limit and I am rarely overdrawn
I have been employed / self employed for the last 12 months, and take home a minimum of £900 per month
I have missed 1 or 2 card payments in the last 12 months
I have fallen behind on payments but I am bringing them up to date
I have had a county court judgements (CCJ's) which are satisfied
I have county court judgements that are outstanding for unpaid bills or loans
I am not on the voters roll and I have never obtained credit

If you have a poor credit rating, it's not there forever. As your circumstanes change, your credit status changes you ... and there are practical steps that can be taken to repair it. To begin to repair and restart your credit status, click here!