I've been refused credit
A lender has turned you down for a loan, credit card or other borrowing. You want to understand why and what to do next without making things worse.
First things to check
- 01 Do not apply to another lender immediately. Multiple hard searches in a short period will reduce your credit score further and make the next application harder.
- 02 Check your credit file. A refusal is a signal to look for errors, outdated information, or accounts you do not recognise. All three main agencies — Experian, Equifax and TransUnion — let you check for free.
- 03 Ask the lender why you were refused. They are not obliged to give a reason, but some will. Even a vague answer can help you understand whether the issue is your score, your income, your existing debts, or something else.
- 04 Work out whether you need this credit now, or whether waiting three to six months and actively improving your score would open up better options at lower cost.
Know the risks
- Applying repeatedly after a refusal leaves a trail of hard searches on your file, lowering your score each time
- Lenders who specifically target recently-refused applicants often charge very high rates
- Some credit-builder products have fees or conditions that make them more expensive than they appear — read the full cost carefully
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Use a tool or checklist
When to get free help
If you believe you are being refused because of unmanageable debt — rather than a thin credit history or a one-off missed payment — a free debt charity can help you make a plan before you apply for anything else.