If you been turned down for a student bank account, a credit card or a loan, it's probably because of what is written on your credit reference file. It is possible that the lender made its decision based on the information given to them in the application for credit (such as details about your job, salary, previous credit history etc.). It can also simply mean that you are not the type of customer the lender is looking for. But if your credit file is the problem, here's what you need to do.
Your credit reference file contains
- Electoral Roll information - if you are not listed on the Roll, lenders may consider you a bad risk because you don't have a fixed address.
- A list of people you have financial links with at your address - this could be a problem if you have a spendthrift partner.
- Any county court judgments for the past six years.
- All your credit accounts and whether you're up to date with repayments on them. These include credit cards, catalogue companies, mortgage and hire purchase agreements for cars. This information dates back six years.
- A record of searches made by lenders as a result of you applying for credit, including applications for mortgages and loans. Too many of these and the lender may think you're over-extending yourself.
Clearing up a credit problem
You can ask any company that turns you down for credit to tell you if a credit reference agency was used. If it was, you have a right to ask to see a copy of your file.
- Contact the credit agency concerned and request a copy of your file. The easiest way of applying for your file is online, which most agencies allow.
- Provide them with your full name and date of birth and details of any addresses you have lived at over the past six years.
- Check your file. If there's any incorrect information, you have the right to have it corrected, removed or to have a note put on your file.
- If you've had a problem because the agency has included information about a person in your home with whom you have no financial connection (i.e. no joint loan or mortgage etc.), you can write to the agency to disassociate yourself from that person.
- Write back to the agency saying why you think any information is wrong, enclosing any relevant evidence. Ask for your file to be amended. The agency then has 28 days in which to respond and tell you what it has done.