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The Credit Blacklist Myth |
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It has never seemed easier to borrow money, so if you do get turned down, the obvious question is “Why?” swiftly followed by the nasty suspicion, “Maybe I’m on a credit blacklist.”
The good news is that you're not. In fact, there’s no such thing as a credit blacklist. But there is a host of reasons why you might be rejected.
- Your credit report has worried the lender. This unique, personal record of your credit history could show that you already have a number of loans and the lender may be worried that you will not be able to repay another. To see what a lender sees, view your credit report online now for free with CreditExpert, the credit monitoring service from Experian. You will also find advice that will help you to improve your report.
- You may not fit the lender’s profile For example, a credit card issuer may only give cards to people who already have fewer than three, or a mortgage lender may specialise in first-time buyers.
- You are a non-standard credit risk According to Datamonitor, the independent market analyst, more than one in five adults in the UK are deemed non-standard. They may include the self-employed, others who cannot provide sufficient proof of income and people who have an outstanding county court judgment (CCJ) against them or have had their homes repossessed for non-payment of mortgage.
- You move around Credit companies look for stability – for example, living at the same address for at least three years or having a long-term relationship with the same bank. So, if you move around a lot or switch banks often, this may tell against you.
- Your credit score wasn’t high enough Lenders generally base their decisions on a credit score, which they calculate using the information in your credit report and your application. Every lender has a different formula which can even vary from one type of loan to another.
The easy way to check your credit report is to log onto CreditExpert, the credit monitoring and identity protection service from Experian.
Click here for a free, 30-day trial, which will allow you to see your credit report as often as you like.
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