Having a loan or credit card application turned down is a real pain, but doing the wrong thing afterwards can make things a lot worse. Here's what you need to know!
Do not reapply multiple times
Reapplying multiple times is the worst thing you can do. When you make an application for credit, it shows up on your credit report and lots of applications will make you look less favourable to lenders. When you apply for any kind of credit, the lender will access your credit report to help it decide if it wants to lend to you or not.
The good news is that you are privy to this information too. You've got a legal right to access your credit report through one of the major credit agencies such as Experian or Equifax. But there's more comprehensive deals too, so head over to our credit monitoring channel and compare what is available.
Fix any mistakes on your report
Once you have got hold of your credit report, the next thing to do is fix any mistakes on it. Something as simple as a typo in your name or address can have a negative effect on your score.
Get on the electoral roll
You can keep your score by getting on the electoral role and making repayments on time.
Use MoneySuperMarket's Smart Search tool
There's no point in applying for a loan or a credit card that you're not going to get. So make use of MoneySuperMarket's Smart Search tool which will run a soft search on your application and won't leave a footprint on your credit file. If you're applying for a credit card, click on the 'Will I get this card' button next to each deal, punch a few basic details into a form and you will be returned with some of the deals that you'll probably be accepted for .
If it is a personal loan you're after, head straight to the big green Smart Search button on the loans home page.
But what if, even after you have taken all these precautions you are still turned down by the lender.
Apply for a credit builder card
Use these responsibly and over time you will be unlocking the way to getting better deals.
So, if your application for a loan or a credit card has been turned down, don't panic. Instead, make use of these tips and ensure that your next move is a positive one.