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Refused credit

Am I on a blacklist?

No, there is no such thing as a blacklist. We only hold factual information about people. This is taken from the public records or is provided by lenders. We do not offer opinions about your creditworthiness (that is, whether you are likely to repay credit).

Lending companies make their lending decisions based on information held by credit reference agencies, additional information you may have provided during your application, and their own internal processes.

Our information shows that most people are good payers and make repayments on time.

Why was I turned down for credit?

Unfortunately we are unable to answer this question. The shop or lender you applied to made this decision and different lenders base their decision on different factors. We are not told why you have been refused so you would have to ask the lender concerned. It may be that the information on your credit report was taken into consideration but lenders do take other information into account, such as the information you provide on your application form. Credit industry guidelines encourage lenders to give clear explanations about their decisions to refuse credit and they should explain whether the decision resulted from information held on your credit report or as a result of credit scoring.

Was I turned down for credit because my name isn't on the electoral roll?

It is possible, although lenders don't tell us why they refuse applications. Lenders use the electoral roll to help check your name and address when you apply for credit. Companies also take account of electoral roll information at your previous addresses when you apply for credit.

Only the lender you applied to knows why your application was refused. They will be able to tell you the main reason.

Does my credit report show that I was turned down for credit?

No. If a lender or shop made a search, a record is shown on your credit report but the record does not show whether you were accepted or turned down.

If one company turned me down for credit would others do the same?

Not necessarily. Different companies take different factors into account when deciding whether or not to lend. One company may refuse you a loan while another may accept an application from you. If you are declined you should always request a copy of your report before you make further applications. Multiple applications for credit over a short period of time can influence a lender's decision so it is always advisable to understand the reasons you may have been declined before contacting other lenders.

If I make a query about specific information in my credit report, when can I expect an answer?

You need to first have a copy of your credit report before you can make a query about specific information in it. When you write to us or send a query online about information in your report, we answer and resolve your query as quickly as we can.

The average length of time we take to resolve queries is currently about 8 days. Some queries are resolved more quickly, while others take a little longer, for example when we need to contact other companies for information. We will let you know if we need extra time to help you.

The law gives us 28 days at most to get back to you, but we will always try to give you an answer much faster.

How can I improve my chances of getting credit?

Avoid credit repair companies!

Any changes that need to be made can be made following the receipt of your credit report. This can be obtained from any of the credit reference agencies (Equifax, Callcredit, and Experian) for the £2 statutory fee. Credit repair companies usually charge a lot more and cannot even make sure that changes are made to your credit report. If you do not already have a copy of your Experian credit report you can click here for information about ordering it.

Always check your credit report

It always makes sense to obtain a copy of your credit report either before you make an application or if you are declined credit as a result of the information held by a credit reference agency. Your report includes all the information that any company you apply to may see and should help you establish why your application to them was declined. It does not state why you have been declined, however—only the company you applied to knows this.

Do not make repeated applications for credit once you have been declined. Each application you make is likely to result in a search of your credit report. These searches are registered for 12 months and could affect future applications. Establish why your application was declined before making further applications.

Only make complete and correct credit applications

Lenders want to see your full credit history to help them make a decision, so it is important to provide your full address details. They also require your application form to be completed accurately. Inaccuracies or omissions may affect your ability to obtain credit.

Make sure any county court judgment (CCJ) information on your report is correct

An outstanding judgment against you on your credit report will lower the likelihood that you'll be granted additional credit or loans. Make sure that if you paid a CCJ your report reflects this. If you paid a judgment within one month then it should not appear on your report at all. Click here for complete information about CCJs, including how to correct or remove them from your report.

Make sure the electoral roll information on your report is up to date

Lenders use electoral roll information to confirm your address. Once you receive a copy of your credit report check the electoral roll information on it. If your name is not shown and you have registered with your Local Authority you should contact Experian directly so we can investigate and amend the records accordingly. However, if you have recently moved contact your Local Authority to register immediately. Credit reference agencies will amend the details once you or the relevant Local Authority notifies them. Click here for information about the electoral roll, including how to get on it.

Obtain regular credit reports

It is valuable to monitor the information held by credit reference agencies and to make sure that it shows what you believe to be an up-to-date and accurate reflection of your credit history. You can visit CreditExpert.co.uk and sign up for a credit monitoring service from Experian. CreditExpert gives its members unlimited online access to their credit reports and also alerts them by e-mail or SMS text to significant changes to the information held about them.

General guidelines

My personal circumstances have changed. Can Experian offer any advice?

As part of Experian's consumer education programme we produce a set of leaflets called “Credit Crossroads”. The leaflets give you help and advice about your credit report at specific times in your life, for example if you are made redundant, suffer a bereavement, undergo a divorce, or if you move house, are leaving home, or have been refused credit. The latest leaflet gives advice about the growing problem of identity fraud.

What should I do if I can't pay my debts?

You should always talk to your lenders first. They may be able to agree alternative repayment terms that you will find easier to manage.

Don't be tempted to go to a credit repair company. If you're concerned about honouring your credit agreements and the effect on your credit rating, you should turn to reputable organisations.

Are there any organisations that can help me with my debt problems?

Yes. Below are details of three that can help you with your debt problems. You can contact any of them for free, confidential, and independent advice.

The Citizens Advice Bureaux (CAB) is a registered charity. Their service offers free, independent and confidential advice from more than 700 locations throughout the UK. Click here to visit the Citizens Advice Bureau web site at www.adviceguide.org.uk.

The Consumer Credit Counselling Service is a registered charity dedicated to providing free, confidential counselling and money management assistance to financially distressed families and individuals. They provide counselling on budgeting and offer advice on the wise use of credit. Phone 0800 138 1111 or click here to visit the Consumer Credit Counselling Service website at www.cccs.co.uk.

National Debtline is a helpline that provides free, confidential and independent advice on how to deal with debt problems. You can reach them by calling free on 0808 808 4000, or visiting the National Debtline web site at www.nationaldebtline.co.uk. 824

Can I explain my circumstances on my credit report?

If there are any circumstances you want to explain about entries on your credit report, adverse and non-adverse, you can add a short explanatory statement, called a Notice of Correction, to your report. If you add such a statement then anyone searching your report in the future, as well as companies who have searched in the past six months, see a copy of it.

What do credit repair companies do?

Experian firmly believes that many of the claims made by credit repair companies are false and that consumers should not be persuaded to pay for advice and services which are already available free of charge. We also believe that some credit repair companies make bogus claims and often make matters worse for people already in financial difficulty.

Experian does not respond to requests made by credit repair companies; if an individual authorises a credit repair company to apply for a credit report on their behalf we still have to send the report directly to the individual at their home address.

We always advise people to correspond directly with us so that we can deal with their queries free of charge. For debt counselling services we suggest you contact the Citizens Advice Bureau, the Consumer Credit Counselling Service or any bona fide money adviser. All these services are, of course, free—as is often a brief session with a solicitor for legal advice—in contrast to those offered by credit repair companies.

Most credit repair companies claim to be able to remove county court judgments from a credit report. There are legitimate ways in which judgments can be set aside, for instance if the sum is paid within a month of judgment or if a person genuinely has not received the relevant summons. Information on what to do in these circumstances is available free from the county court. However, if a consumer claims not to have received a summons when they have - and there is evidence that some credit repair firms actively encourage people to lie in this way - the consequences can be very serious. Also, if a judgment is cancelled because of non-service it is usually re-served and, if the consumer still cannot pay the full amount of the debt, a new judgment will be put on record for a further six years.

Credit repair companies also claim to be able to remove adverse credit account information. This information can only be updated by a credit reference agency under the instructions of the lenders who provide and own the data. Lenders will only consider amending their information if it is incorrect; if it is a true record they will not alter it because they are committed to sharing factual information in order to promote responsible lending.

With the free advice of Experian's Consumer Help Service consumers can add statements to their credit reports explaining the circumstances that led to financial difficulty.

Through an industry working party Experian is currently liaising with representatives of several reputable lenders, credit industry trade associations, Citizens Advice Bureaux, and Registry Trust to make sure that people do not pay unnecessary fees to companies which claim they can 'repair' credit information.

The working group is also putting pressure on the Office of Fair Trading and the Department of Trade and Industry to take action against the more unscrupulous of the credit repair companies. Furthermore, we have asked the Lord Chancellor to review current UK legislation in view of the success in the US of a Federal law which protects consumers from being charged up front by credit repair companies operating in North America.

Does shopping around for the best credit deal leave a lot of searches on my credit report?

Shopping around for the best credit deal should not generate an abnormal number of 'credit searches' on your credit report. This is because a credit search should only be conducted in response to an actual application for credit. When shopping around, people usually obtain basic details of offers from a range of lenders, then make an application to those considered to be the best deal.

Asking for a quotation should not affect your chances of getting credit in the future because, for most types of credit, lenders do not have to search your credit report to give you a quotation. But if the cost of the credit deal does depends on your credit score, the lender may need to search your credit report. In such cases, the lender should make a 'quotation search' and not a credit search. Lenders searching your report in the future will know that quotation searches do not reflect actual credit applications.

The lender should always tell you if they are going to search your credit report and what sort of search they will make. Making several applications for credit over a short period of time can influence a lender's decision. As a result, if you have been refused credit, it is always best to find out why before you apply to other lenders.

Can I have a new credit report when it has been updated

If we correct any information on your credit report we have to send you a copy of the amended entry. However, if you need a complete new credit report then you should make a fresh application.

I paid a judgment within one month. Can it be removed from my credit report?

England and Wales. If you have paid a county court judgment within a month then you need to obtain a 'Certificate of Satisfaction' from the County Court. You will need to pay the official fee of £10 (payable to HM Paymaster General). All credit reference agencies will then be notified within four weeks and remove the judgment from your report (if applicable).

Scotland. If you have paid a Scottish Decree within one month then send Registry Trust Limited original proof of payment from the pursuer (the person or organisation that took you to court), using the address below. The proof of payment should include the name of the court concerned, the amount, date, case number, and the date it was paid in full. You should also enclose a search fee of £4.50.

Northern Ireland. If a Northern Ireland judgment has been made within a month then send Registry Trust Limited original proof of payment from the pursuer (the person or organisation that took you to court), using the address below. The proof of payment should include the name of the court concerned, the amount, date, case number, and the date it was paid.

If Registry Trust can amend its records from the documentation you provide, they will notify all credit reference agencies (Equifax, Callcredit, and Experian) to make sure the judgment (Scotland) or decree (N. Ireland) is removed from your report. The address to write to is:

Registry Trust Ltd
173-175 Cleveland Street
London   W1P 5PE 510

 

Information reproduced with thanks to Experian
www.experian.co.uk