Credit Rating Guide

Been refused credit and don't know exactly why?

There are many reasons why you may be declined for a loan, but it is likely to be due to your credit rating. When you apply to a lender, they access your credit file with the Credit Reference Agencies to assess your credit-worthiness.

How Credit Scoring Works

Below are some of the ways in which a lender will give you a score to decide whether or not they will lend you money for a large purchase such as a vehicle loan. Reasons you may be declined include:

• No electoral roll information
• County Court Judgements (paid or unpaid)
• Defaults and missed payments (paid or unpaid)
• Repossessions
• Family Adverse Credit
• Poor payment history on any accounts (present and past)
• Multiple address links
• Multiple links with other people
• Incorrect or out of date information
• Multiple Credit Searches
• CIFAS warnings

Further factors that a lender may take into account when deciding on whether to grant you a loan are:

	Excellent	Good	Fair	Poor
You have been resident in the UK for at least the last 3 years
You are aged between 21 and 65
You have obtained credit at your current address
You are on the Voters' role at your current address
You are up-to-date on your mortgage payments
Your have credit cards within the spending limits
You have missed no card or loan payments within last 12 months
You never exceed your overdraft limit or are rarely overdrawn
You have been employed / self employed for the last 12 months, and take home a minimum of £900 per month
You have missed 1 or 2 card payments in the last 12 months
You have fallen behind on payments but are bringing them up to date
You have county court judgements (CCJ's) which are satisfied
You have county court judgements for unpaid bills or loans that are still outstanding
You are not on the voters roll and have never obtained credit

If your credit rating is particularly poor, you are likely to be declined for a van loan. However, a perfect solution is our NON-STATUS CONTRACT HIRE, which involves no credit check. See contract hire examples to learn more.

If you have a poor credit rating, it need not be there forever. As your circumstances change, your credit status changes ... and there are practical steps that can be taken to repair it. To begin to repair and restart your credit status, click here!