As you may be aware, many High Street Lenders may refuse people credit for a number of reasons. Within this article we have tried to highlight the main reasons why people are refused credit. Even if you are refused credit then there are still options open to you as there are specialist brokers who may be able to help you get a secured loan or remortgage your home.

The main reasons are:
Poor Current Credit History – This reason covers many aspects. It could be because you have missed payments on your credit card or mortgage.
Count Court Judgements (CCJ’s) – If you currently have any outstanding CCJ’s then many High street Lenders may be reluctant to lend to you.
Electoral Role –As part of their checks the Lenders will use the local electoral registers to check that your address details are correct. If you are not registered at the address that you have given then the Lender may have to make further checks and you could even be turned down. To help your credit rating you should ensure you are removed from your previous address and registered at your new address as soon as possible.
Self- Employed – A self employed person can develop bad credit more easily than an employed person as they may be taking other things into account. An example may be that the cash flow may be affected due to making the decision to postpone making your credit card payment until you are paid for a job. Defaulting on any credit repayment will affect your credit rating. Another aspect is that many high street lenders may be reluctant to lend to self employed people due to the fact that their income may be irregular and most will not lend to a self employed person with a poor credit rating.
Divorce / Separation – If a marriage ends in divorce then it can take a toll on finances. If everything has been split down the middle, one person may find that there is more they have to pay for and they have less money to do it with. In the long run, this can lead to defaults, arrears and CCJ’s.
Recently Changed Jobs – Many High Street Lenders take the length of time that you have been in your current position into account. If you have changed jobs recently then this may be a factor that leads to you being refused credit.

Unsecured loans are decided on a point scoring basis and any of the reasons mentioned above could exclude you from getting an unsecured loan.

Even if you have been refused credit for any of the reasons listed above then there are still places that can help you. You could look to remortgage your home or take out a secured loan. A specialised broker such as Newleaf Finance may be the company to turn to.
Contact us today on 0800 281 370 or apply online now, for either, a secured personal loan or remortgage.