Credit Problems

Also Read - Guide to Credit | Guide to Consumer Credit

This page has information on credit problems also called adverse credit, non status, poor credit, bad credit. This page also gives reason why you might have been refused finance.

With problem credit, it is possible your finance applications will get refused by lenders. They could decide your credit rating is just too low and aren't willing to risk lending to you.
Having an adverse credit rating does not mean you will struggle to get finance for the rest of your life, it is possible to find lenders willing to take a chance with you. Or you could decide to take steps to clean up your record.

A lender could reject your application for finance on a credit check because of:

Poor credit rating.
Low credit score.
Bad employment record .

So an adverse credit history or unfavorable current situation, will weigh heavily against you. Lenders could decide the risk of you defaulting or incurring arrears are just to high.
In short lending to you is just to much of a risk.

Credit Check - Credit Rating

It is not difficult to emphasis the importance of a credit rating, one wrong move and you could find future attempts at getting finance more difficult or even find you are refused. Even applying for finance is recorded on your file by the credit reference agencies, and could affect a lenders decision. Being refused finance even effects the success of any further applications because the denial should be noted on your application.
Having a problem credit rating makes it harder to get finance from a lender because they score applicants on their financial history, including the credit rating, when they do a credit check.

Adverse Credit - Low Credit Score

Lenders don't have to tell why you were refused, except you failed their scoring process or the credit reference agency gave them the impression you are a credit risk.
If you want to find out what information these agencies have, then you can write to them asking for a copy of your file. There is a fee and they will need your details, then the agency will send you a copy of your file within a week of receiving your letter and fee.
Once you have the copy of your credit file, you can see if any mistakes have led to a worse credit rating than necessary. If you spot mistakes on your file you could contact the credit reference agency and have them rectify them, or add a note to your credit file explaining any circumstances. Many people with problem credit ratings look at credit repair agencies to see if they could clean up their credit file.

Low Credit Score - Credit Repair Agencies

You may have seen the adverts from credit repair agencies claiming they can help people with problem credit ratings. If you have problem credit because of your financial history, they claim to be able to have some of the entries on your credit file cleaned up.
It is important to note that these agencies can do nothing that you can't do yourself.

Problem Credit - Improve your Rating

Once you have a copy of your credit file you could look to see if there are any mistakes to be corrected, any CCJ's on your credit record that have been discharged should be noted as such. There are many things you can do to ensure your credit file is accurate and up to date, which may lead to an improved credit score.
If you have CCJ's they will stay on your file for six years and then no longer show up. If you pay a judgment order in the first month of its issue this is noted immediately on your credit file. Make attempts to improve your finances and your problem credit rating should improve also. In the meantime, with patience it could be possible to get finance from one of the companies or web sites specializing in impaired or problem credit.