Loans Bad Credit

A bad credit record isn't the only reason for rejection

If you're rejected when you apply for loans bad credit isn't necessarily the reason for the rejection. Lenders use a system called credit scoring to decide whether they should lend you money, and it's possible to get a bad score even if you don't have a bad credit record.

If you apply for loans bad credit history is one reason why you might be rejected, but it isn't the only reason. Lenders use a system called credit scoring to assess whether they should lend you money, and it's possible to get a low credit score even when your credit rating is good.
If you're rejected for loans bad credit could be a factor, so it's important to ask the lender why they decided not to approve your application. If you think there's an error on your credit history then you should contact Equifax or Experian to get the error corrected (the lender will tell you which of the two agencies they use); however, the lender may simply have decided that you're trying to borrow more than you can afford to repay.
If you're rejected for credit the worst thing you can do is start applying for other loans, especially if the lender's rejection was because they thought you'd be overstretching your finances. Many lenders stipulate that they won't offer loans to anyone who has been refused credit in the last month or even six months, and every unsuccessful application will appear on your credit file – making your application even less attractive.

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