Regardless of whether you are applying for a car loan from you local garage or car showroom, a personal loan from your bank, a mortgage from a building society, a credit card or store card or a new 3 piece suite from a furniture store, they will all perform 1 simple action before they accept your application and that is a credit check. Based on what is in that report, a credit score is arrived at and the lender will then either accept or decline you depending on what this credit score is and if they refuse you, that is the end of the matter, there is no negotiation or appeal.
If you are refused credit, it is not because you are on some 'credit blacklist', (there is actually no such thing), it can be for a host of reasons that your rejection has occurred.
Here are just some of the possible reasons;
a) Your 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.
b) A credit card issuer may only give cards to people who already have fewer than three, or a mortgage lender may specialize in first-time buyers.
c) You may be a non-standard, 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.
d) 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.
e) 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 result of all this is that it is essential that you know what information your credit report contains so that you can not only work towards improving it, but actually see the information that companies you have dealt with, have added to your report. It is not uncommon to find that an entry has been made incorrectly because you have the same name as someone else, or someone at an address you previously lived at has had a credit problem or a host of other possible inaccuracies. You may find that a company who you had credit with has your report showing you missed payments or you still have a balance outstanding etc. whatever problems you may or may not find, will only become evident if you can actually see the report.
Additionally, if you subscribe to a credit report company, you will receive alerts when your credit record is checked and this is a key factor in preventing identity fraud as it alerts you to the fact that someone has applied for some type of credit, and if it was not you then it is usually the start of some fraudulent activity in your name. It has personally happened to me on 2 occasions when my credit report had been checked unknown to me, but as I was alerted to the fact no identity theft was able to take place.