5 things that can stop you getting credit - and what to do about them

How you may stumble trying to get credit and what you can do to improve your chance of getting credit

• 1. A poor credit history
• 2. Your partner has had financial problems
• 3. You've been a "credit tart"
• 4. Register to vote at your current address
• 5. Your credit score is too low

1. A poor credit history

High debts, late payments and court judgments can all result in rejections, even if there were special circumstances that explain your problems. To lenders, they indicate that you could be overstretched and might not repay a new loan.

Check your credit report before you make an application and be sure that all the information is up to date.

2. Your partner has had financial problems

Your own credit history may be clear but the name of anybody with whom you share financial responsibility (joint accounts, etc) will also appear on your credit report. This is known as a financial association. You may not know if he or she has had any problems, but a lender will check.

If you think this could be triggering rejections, get your financial associate to check his or her credit report too.

3. You've been a "credit tart"

With so many good deals on offer recently, it makes sense to find out who could make the best offer. When applying for any kind of credit - not just cards, but also mortgages and loans - you should always specify that you want a quotation and make it clear that you are not making a full application.

Lenders dealing with an application make a full search of your credit report, which will be left on record. Other lenders will see this and could believe that you are overstretching yourself, are desperate for money - or even that a fraud is being planned.

4. Register to vote at your current address

Lenders use the electoral roll to help check that you are who you say you are and live where you say you live. If you fail to register to vote, they cannot verify your identity and may ask for additional identification, suspect a fraud, or even turn you down flat.

If you want to register, you can download a form from www.aboutmyvote.co.uk or ask your local authority for a rolling registration form, which will enable you to register at your current address and de-register from any old ones.

5. Your credit score is too low

Before deciding whether or not to lend money, most organisations take your credit report, plus additional information included on your application form, and generate a credit score. This score will be different for each lender and indicates to the lender the risk involved in granting you credit.

Your credit score will change over time as the information in your credit report and on each credit application form is updated. So make sure the information held about you is correct.

View your credit report for free with CreditExpert from Experian

21 February 2008 © Moneyextra.com

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.