Good afternoon / 30.08.08
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It can be upsetting and confusing if you have been refused credit, but you can ask the lender why they have made their decision. They should also tell you whether they have accessed the files of one or more of the credit reference agencies whilst processing your application.
Neither consumers nor the properties they live in can be 'blacklisted'. This is a common misconception. Callcredit does not hold a 'blacklist' - we simply provide those lenders who are subscribed to our services with factual information that enables them to make a balanced and commercially sensible decision about your application.
No. Credit reference agencies collect factual information from various sources, which lenders use to help them make credit decisions. We do not offer opinions about an individual's creditworthiness. Lenders adopt differing lending criteria depending on the level of risk they are happy to expose themselves to and the volume of new accounts they need to acquire. In theory, one lender may grant someone credit, whilst another may decline the request.
No. Although the fact that a lender has searched our files is recorded on our in the Credit Search History section of your credit file, we are not informed of the decision made by the lender.
Only the lender concerned knows why an application was declined. Whilst they are not under any legal obligation to inform applicants why they have been declined, most lenders will tell you the main reason for their decision. Lenders who use credit scoring as part of the application process adhere to the Guide to Credit Scoring recommendations, which requires them to provide their declined applicants with a reason for refusal.
They use a combination of the following:
We are not made aware of the reasons why your application has been declined. Only the lender involved knows the reason for their decision. Electoral Roll information can be used in the decision making process to verify your name and address, however if you are not on the Electoral Roll at your current address most lenders will check the Electoral Roll at your previous address or will ask you to provide other forms of evidence to show that you live at your current address.
When applying for credit always provide accurate, truthful and complete information to the lender on your application form. Any inaccuracies or omissions may affect your ability to obtain credit in the future.
Lenders are looking for evidence that you are able to repay existing credit on time, therefore it is important to pay your bills and credit agreements back on time.
Obtain a copy of your credit file from the three credit reference agencies on a regular basis to ensure the information held is accurate and up to date.
Be aware that if you make a large number of applications for credit each one will leave a credit search on your credit file. This may have a negative effect on your ability to obtain credit in the future.
Credit scoring is a technique used by financial institutions to help them assess the risk involved in extending credit facilities to someone. Based on the level of risk calculated (i.e. the credit score) they will decide whether to extend the facilities applied for. Calculating a credit score for each applicant allows the lender to assess each application fairly using the same criteria. The credit score is derived from the information provided on the credit application form, data provided by a credit reference agency and details of any existing relationship you may have with the lender.
