Don’t risk credit rejection

Being rejected for credit can make your credit score worse, so moneysupermarket.com have launched a tool that can help you choose the credit card you will be accepted for... 

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More than 4.5million people in the UK were rejected for credit in the last 12 months, that’s over a quarter of all applicants that potentially damages their credit file, so how can you avoid rejection?

Men fared worse with 28% who applied getting rejected compared to 23% of women.

Younger would-be borrowers also got hit harder than older, with just 12% of over-55s knocked back for a credit card or loan.

If you’ve made the decision to take on credit, whether it’s a loan, a credit card, or a mortgage, you want to be sure you have got a good chance of being accepted.

Rejections can actually damage your credit rating, so if one lender turns you down, you could find yourself knocked back by other lenders who would have lent you previously.
 
So what can you do?

Keeping your credit file positive is an ongoing effort. You’ll need to make sure you’re on the electoral register, pay your bills on time and can prove you can manage debt responsibly – whether through an existing credit card, an overdraft or even a mobile phone contract.

If you don’t have a history of borrowing then it can be harder to prove to lenders that you’re going to be responsible. Consider applying for a credit builder card initially, so you can prove you can handle debt well.

Whatever you do, don’t apply for loads of cards or loans at the same time. This kind of behaviour makes lenders very wary and makes it much more likely you are going to face rejection.

Take a few moments to check your credit file before you apply, this cost just a few pounds, and you can compare prices at moneysupermarket.com.

If your score isn’t high then you’re unlikely to be offered the very best credit cards or loans, so don’t risk rejection and instead apply for less competitive deals.

But even if your credit score is high, that doesn’t mean you’ll be accepted for every credit card out there. Different lenders have different criteria, so even the most responsible of borrowers could find found themselves getting rejected.

That’s why moneysupermarket.com has launched a credit profiling tool for people looking for a new credit card.

It performs a soft search on your credit file, which doesn’t harm your credit score.

You can then see how likely you are to be accepted for different cards.

Because rejections can harm your credit score, it can be difficult to shop around for a loan or credit card.

But understanding how likely you are to be accepted before you apply can help you make more realistic applications and cut the number of rejection.

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