Turned down for credit but dont panic

Britons turned down for credit should not panic, but should check their credit report before applying elsewhere, new research claims.

A study by MyCallcredit warns consumers to check their credit rating before applying to another lender. A couple of negative markers can reduce a credit score and may be an indicator that the borrower has reached their credit limit and should organise their existing debts.

MyCallcredit director, Alison Nicholson, commented: "People shouldn't panic if they are rejected by a lender - lots of people are turned down for credit but that doesn?t mean they have to resort to lenders who charge uncompetitive rates. It may be that your credit profile simply doesn?t suit that particular lender - another lender may look at the application more favourably.

"The best way to get an idea of how a lender will view you is to look at your credit file and obtain a credit score. If your credit file is clean and your credit score high then you should be able to choose the best deals on the market when you want to borrow."

MyCallcredit, which provides people with access to their credit file, has issued a list of positive and negative credit markers for consumers, but stresses that it is not exhaustive and will vary from lender to lender.

Positive credit markers include being in continuous employment for a number of years, paying existing credit commitments on time, being a homeowner and having a low income to debt ratio. Some negative credit markers are County Court Judgements, a history of not making debt repayments on time and a large number of searches performed on a credit file.

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