Applying for credit only to be informed you have failed the credit check can be a disappointing experience. It can be even more confusing when you are not sure why exactly you have failed.
All you know is that the lender you applied with made a check with one of the credit reference agencies and based on the information they obtained, was not able to approve your application.
What can you do to reduce the chances of a failed credit check? In this guide we look at what you can do to improve your chances of acceptance and also provide a link to Credit Expert where you can take a look at your credit report, to better understand the information it contains.
Reduce the chances of a Failed Credit Check
Make sure you provide accurate information
Entering incorrect information, such as incorrectly spelling your name or address when making an application online can cause your credit check to fail. The reason being that the lender might not be able to verify who you are. Double check everything you have entered before hitting the apply button to be on the safe side.
Manage your existing accounts well
Making your payments on time demonstrates to potential lenders that you are a reliable borrower. If you are late with payments then the fact you have been late is recorded on your credit report. The easiest and most convenient way to pay your bills is by using direct debit. That way you don’t have to remember to make payments.
Be careful before applying
If you know that you have a poor credit score then applying for mainstream credit products is a waste of time. For example instead of applying to Natwest for a Credit Card, you would be better applying with Aqua Card or Capital One as they are geared more towards customers with a weak credit history. Also if you manage these accounts well eventually you will be able to apply for a more mainstream credit product with a better chance of acceptance.
Check that the information on your credit report is correct
It is also worth checking your credit report from time to time to make sure the information contained within it is correct. Incorrect information can cause your applications for credit to be declined. You can find out more about checking your credit report at the end of this guide.
Make sure you are on the Electoral Roll
Being on the electoral roll allows a lender to verify you are who you say you are. Not being on the electoral roll makes this process more difficult and can result in an automatic decline. You can register on the electoral roll online by visiting the aboutmyvote website.
Don’t make too many applications for credit in a short space of time
Making a large number of applications for credit within a short space of time is not advisable. Whenever you make an application for credit, the fact you have made the application is recorded on your credit report. If you have recently failed a credit check, it is best to wait at least three months before applying again.
If you find you are constantly being declined for credit and you are not sure why, it is time to check your credit report to make sure there isn’t anything unexpected recorded against your name.
