There could be many reasons why a lender has refused to give you credit. You may have too many debts already to pass their credit scoring check or personal information on your credit report might be incorrect.

If you are declined credit, the lender should tell you the main reason for this - whether their decision was based upon a credit score, information held on your credit file or on their own specific policy. If the decision was based upon your credit report, the lender should tell you the name and address of the credit reference agency they used.

Always check your credit report

It always makes sense to obtain a copy of your credit report either before you make an application or if you are declined credit as a result of the information held by a credit reference agency. Your credit report will include all the information that any company you apply to may see and should help you to establish why your application to them was declined. It will not state the reason you have been declined because only the company you applied to will know this.

Do not make repeated applications for credit once you have been declined. Each application you make is likely to result in a search of your credit report. These searches will be registered and could affect future applications. Establish why your application was declined before making further applications.

Things to remember

Once you have received a copy of your credit report, remember: if your name is not registered on the electoral roll, contact your local authority and request that they add it. Credit reference agencies (Equifax, Call Credit and Experian) will then amend the details once notified by yourself or the relevant local authority.

If you have paid a county court judgment (CCJ), make sure that it is shown as satisfied on your credit report. If it is not, then contact the court and obtain a certificate of satisfaction. All credit reference agencies will be notified of the change within four weeks. If you believe a judgment has been incorrectly registered, contact the court in question.

If a bankruptcy order has been discharged or annulled and this fact is not shown on your credit report, send a copy of the order of discharge or annulment to all credit reference agencies and ask for your report to be updated.

If you can pay any outstanding payments shown against credit account information, contact the lender concerned and also ask that they advise all credit reference agencies so that their records can also be amended.

If a credit account has been paid but this is not shown on your credit report, contact the company concerned and ask them to make the necessary changes.

If companies have searched your credit report more than once in response to only one application, again, ask them to make the necessary amendments.

If you have been linked to addresses with which you have no connection, contact the companies who created the links and ask for the address link to be deleted.

You may wish to add an explanation or "notice of correction" to the information held, for example, the reasons why an account fell into arrears at a particular time. This can be up to 200 words. Any future lender who sees the entry to which it relates will also see the notice.

It is valuable to monitor the information held by credit reference agencies and to ensure that it shows what you believe to be an up-to-date and accurate reflection of your credit history.

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Advice offered here is of a general nature and is intended for guidance only. It is offered without any legal responsibility. You should always consult your own independent professional adviser - such as an accountant, solicitor or money adviser (at your local citizens advice bureau, for example) - about your specific situation.