Why was my credit application declined, and what can I do?

Why lenders turn people down

The lender makes the decision, not the credit reference agency. Experian says agencies are not even told when you are refused, or why. Every lender has its own requirements, so being turned down by one does not mean every lender would say the same.

Experian lists these common reasons:

• Late or missed payments, defaults or county court judgments on your file.
• Not enough credit history, for example if you have not used credit before or are new to the UK.
• The lender could not confirm your identity or address, which can happen if you are not on the electoral register or have recently moved or changed your name.
• A mistake on the application form, such as a flat number written the wrong way.
• Several credit applications in a short time.
• A financial link to someone with a poor credit history.
• An IVA or debt management plan, which suggests you cannot afford more debt right now.
• You are not the kind of customer that lender wants, or your income or job history did not meet its rules.

What the lender has to tell you

Under section 157 of the Consumer Credit Act 1974, if a lender decides not to go ahead because of information from a credit reference agency, it must tell you that, and give you the agency’s name, address and telephone number. This does not apply to hire agreements or to borrowing secured on your home.

In other cases you can write to the lender and ask which agency it used. You need to ask within 28 days of the application ending.

The lender does not have to give you a full explanation. But the ICO says that if you think you were refused unfairly, you can ask the lender to explain the main reason and to review its decision. It may still say no after a review.

What to do next

1. Stop and do not apply again straight away Experian says several applications in a short time can lower your score and your chances, and suggests no more than one application every three months.
2. Check your credit files Look at the file held by the agency the lender named, and ideally all three main agencies, because they can hold different information. Check your name, addresses, accounts, missed payments and anyone you are financially linked to.
3. Get mistakes corrected Raise anything wrong as a dispute with the agency. If you are linked to someone you no longer share finances with, the ICO says you can ask the agencies for a disassociation. If an entry is accurate but there is more to it, you can add a notice of correction explaining your situation.
4. Check you are on the electoral register Experian says registering to vote at your current address helps lenders confirm who you are.

Your free statutory credit reports

Alongside the CheckReport option above, you have a legal right to see what each agency holds about you for free. The ICO says you do not need to pay a fee or sign up to a subscription for this. Look for the words ‘statutory report’ on the Experian, Equifax and TransUnion websites.

If you were applying because money is tight, pause before trying anywhere else. Free debt advice from StepChange, National Debtline, Citizens Advice or MoneyHelper can help you look at your budget and your options.

Sources

Every fact in this page was checked against these official sources on 31 October 2026.

1. Credit (For the public) Information Commissioner’s Office
2. Consumer Credit Act 1974, section 157: Duty to disclose name etc. of agency legislation.gov.uk
3. Declined credit? What you should know and what to do next Experian

Written and fact-checked by the PiggyBank editorial team. Last reviewed 31 October 2026. This answer is general information, not financial advice. How we write and check our guides.