7. Problems getting credit?

When deciding whether to offer you credit, most lenders use a combination of information held by the credit reference agencies and their own credit scoring system. There is no such thing as a “blacklist” of people that lenders will automatically refuse to lend to.

Credit scoring works by allotting points for certain criteria. For example, you may get points for being registered on the electoral roll. The more points you have been allotted, the more likely it is that the credit provider will lend to you. Different creditors have different scoring criteria, so you may be refused by some but accepted by others.

If you've been refused credit, you can:

• ask the credit provider why – though it does not have to give you a detailed reason; and
• get a copy of your credit reference file from any (or all) of the three main credit reference agencies: Call Credit, Equifax and Experian.

You can get a copy of your credit reference file by applying in writing (or online), with your name, address, date of birth and previous addresses for the last six years. You will have to pay a small fee for a copy of your file.

If there is a mistake or something you believe is wrong on your file, you can apply to the credit reference agency to have it removed or changed, or a note added to your file. If you have a credit default or county court judgment on your credit file, the credit reference agency should normally remove it after six years.

If you need help dealing with refusal of credit or any other aspect of debt, we recommend that you speak to one of our debt advisers on 0845 345 4 345 for specialist advice. Telephone specialist advice is only available if you qualify for legal aid.

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