What To Do When Declined For Credit

Many of us have had the feeling of being declined for finance. I certainly have, and recently too. It is not a good feeling, to say the least. It is demeaning, but more importantly it means your existing financial worries remain. Therefore, the best thing you can do is to work out why this has happened, and take steps to ensure the process is not repeated. We take a look at what to do when declined for credit.

What To Do When Declined For Credit – Why It Happens

Accepting or declining a loan depends on pure information and a credit score. The lender needs to trust that a potential borrower will make full repayments, on time. The good thing about a credit score is that you can improve it. You can ascertain why your score is what it is, and take steps to change that. If a lender declines you for a loan, it is because your report did not demonstrate sufficiently a history of making regular repayments. The more reliable you are on this front, the greater chance you have of a finance company accepting you for products. So ensure you make your repayments. Set up direct debits so that you automate the process, meaning you cannot forget to make one.

What To Do When Declined For Credit – Other Steps

Ensure your details are correct, and that you are on the electoral roll. A significant time at one address helps your cause, though is not a necessity. Ensure also that all details on your report are correct. Mistakes can be removed, as long as you can demonstrate to the credit agency that it is definitely a mistake. Also a plus is a steady employment history. And as for your existing debt, having debt is good, as it is the only way you can demonstrate a history of paying it off. However, having all your credit cards maxed out is not a good look at all, so try to avoid that. Lenders are unlikely to provide reasons for rejecting you for credit, so it is up to you to have as good a score as possible and hope for the best.

Regular Checks Help

You should check on a regular basis your report, so you know it is up to date and free of errors. Your credit file should be the first port of call when looking into why you were declined. It may surprise you how much debt you have, so it helps to have it laid out in front of you. Arrears will remain on your account for 6 years, so sometimes it is a case of just waiting for things to improve.

What To Do When Declined For Credit – Rearrange Your Finances If Necessary

If you are simply spending more than you get in paying off debts along with life’s normal costs, then it may be time to look at rearranging your debts. A consolidation debt may help reduce monthly costs, reduce missed payments and help improve your score with time. If you have any savings it may be better to use such funds to pay off debt. Better to ease the burden and work on your finances rather than deepening the hole by taking out more credit. Look at your monthly outgoings to and consider making savings in your life. Write down everything you spend money on and see if you can free some extra pennies.


If a lender does decline you for credit, then do not go wildly applying for credit elsewhere, as this will leave an imprint on your report. A prospective lender will see this and think you may look desperate. It is not a good look. So be patient and when the dust settles apply again if you feel confident of the lender accepting you. Think long term and do not make impulsive decisions.