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Category: Law
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Hello, Im a serving soldier in the british army and have been

Customer Question

Hello, Im a serving soldier in the british army and have been for the past 8 years I am trying to get credit from lenders for mortgages, loans etc. However I keep getting refused credit? Ive never been in debt or even missed a payment for anything in the past and my credit rating is excellent. However im not being given any answer to why im being refused?
I earn over 30k and have had credit in the past like car finance, tvs, laptops, and phones.
No lender will tell me why im being refused and all people I speak to are just as baffled as me? I really dont know what to do and its starting to effect my life.
Is there anything I can do legally about this??
Submitted: 4 years ago.
Category: Law
Expert:  Vincent2013 replied 4 years ago.

Hi, thanks for your question. My name's XXXXX XXXXX I'm going to help you with it.


Firstly, if you're turned down for credit, the credit provider does not have to give you detailed information on the reasons why BUT they should tell you whether you were turned down as a result of a search on your credit file and which credit reference agency they used.


If you have, so far, only checked Credit Expert (which is a trading name of the Experian credit reference agency) I should advise you that there are actually three credit reference agencies that you should investigate to see what might be going on. These are:


Experian, Equifax and Callcredit.


They do not always hold the same information and, if you are seeing a great score from one agency, but the credit provider is using another one (which might hold less favourable information), this could be causing the confusion. You should therefore obtain credit reports from all three agencies. Each one has a premium service for immediate online access to your credit information or you can make a paper application for a nominal fee (£2) which should take a couple of weeks.


In addition to your statutory report (i.e. the information that the credit reference agencies are legally obliged to show you upon request), all three of them also provide "credit scores" as part of their premium service. Whilst the score generated by the agency itself might look great, it is usually meaningless to large credit providers who will be assessing the underlying data (in accordance with their own criteria) to make their own credit assessment.


Even if all the data with all the agencies looks good (i.e. lots of green boxes, no defaults and no red flags), there are some other factors to take into account which might explain your current problem obtaining credit. One of the most important of these is multiple applications for credit within a short period of time. If you have been turned down, the biggest error you might be making is continuing to apply for credit. This is because all applications (successful or otherwise) will appear on your credit file and lots of applications within a short period can make lenders wary and damage your credit.


Mindful of the above, you should carry out the following steps:


1. Obtain all your credit reports (i.e. from each of the three agencies) and check them throroughly for issues. For instance, check that your mobile phone provider doesn't have you at an old address (easily done when we rarely receive paper bills any more). If it's your mistake, update it with the provider and then notify the credit referfence agency. If it's the agency's mistake send them a 'notice of correction'. You are legally entitled to do this. If they fail to remedy it, you can contact the Financial Ombudsman who can order them to correct it.


2. Check that where credit reference agencies hold the same information, this information is consistent (i.e. the addresses allocated to certain loans and credit agreements are the same). Notify them of any errors in their information, again, using a notice of correction, if necessary.


3. Make sure that you are on the Electoral Role and that, if you are on this already, it is accurately reflected on your credit reports at each agency.


4. Don't saturate your applications to credit providers from now on. It will have a detrimental effect on you receiving credit. Also make sure that you use consistent information in your credit applications to lenders.


The key legal rights here are your rights to obtain all three credit reports and your ability to make and enforce (through the ombudsmen, if necessary) a notice of correction. The rest is tactical and requires a regular diligent examination of your credit reports and a consistent and staggered approach to applying for credit.


I hope that this is helpful but do let me know if you need anything further. I'm always here to help. Also, if my answer has been satisfactory, please do remember to rate me positively so that I can receive credit for my work.

Expert:  Nicola-mod replied 4 years ago.

Just a quick reminder, there is an unrated answer waiting for you here from the Professional.

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