Bad Credit Loans
It may not necessarily mean that you are a bad credit risk when you are turned down for a loan. it could be that you have just not accumulated a credit history at all. You may not have applied for credit or you may have all your dealings with one lender/bank. In that case lenders would need to look at bank statements and income payment slips.
To successfully apply for a loan means that your credit history has been investigated by the intended lender and been cleared for any risk. The lender will have applied their own credit assessment and then applied to one of the main credit reference agencies for additional information regarding any credit accounts, credit applications and financial associations.
Lenders will try to assess their risk by using as much readily available information as possible. They will look toward the Public Records: e.g. electoral roll information, court judgments, individual voluntary arrangements and bankruptcies.
You may be refused a loan simply because you have been a little to active in applying for store cards or credit cards in your recent past, this will have left a 'footprint' and lenders may feel that you would be over commiting yourself by taking on further debt or that identity fraud is possible.
If you have applied for a loan and find that you are declined credit the lender should tell you the main reason for this.
If they have based their refusal on a credit report then they should tell you the name of the credit reference agency. They may have refused you on the basis of their own credit score in which case there is little you can do other than try to improve your future credit history and look to re-applying at some other time.
It is worth looking around for the best deal available and to consider the long term implications of a loan which will undoubtedly come with a high interest rate.
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