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Step 01

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.

Who this is for: People who have recently had a credit application refused — whether for a loan, credit card, overdraft, mortgage or another product. Being refused is more common than many people realise, and it does not automatically mean you are in serious financial difficulty.
Step 02

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 A refusal is a signal to look for errors, outdated information, or accounts you do not recognise.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.
Step 03

Know the risks

⚠ Before you proceed
  • 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
Step 04
Read these guides first
Step 05

Use a tool or checklist

Tool
Borrowing Affordability Checklist
A structured checklist to run through before applying for any loan — to make sure you have considered the risks.
Open →
Tool
Credit Score Improvement Plan
A personalised action plan to improve your UK credit score over 3–12 months.
Open →
Step 06

When to get free help

Important

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.

Useful terms to know

CCJ (County Court Judgement) A court order issued in England and Wales when you fail to repay money you owe. … Credit score A number produced by a credit reference agency that summarises your credit histo… Default A default is recorded when you fail to make repayments for a sustained period — … Hard search (hard credit check) A full credit check that leaves a record on your credit file visible to other le… Soft search (soft credit check) A credit check that doesn't leave a mark on your credit file visible to other le…