CCCS: Credit rating is not affected by rejection

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CCCS: Credit rating is not affected by rejection

Mon 3rd Nov 2008

Consumer credit ratings are not affected by their being rejected for a credit application, it has been claimed.

The Consumer Credit Counselling Service (CCCS) explained that being refused credit merely shows that one already has a faulty credit record and that action should be taken to improve it.

Spokesperson Tom Howard advised rejected credit applicants to find out why their record is poor.

Defaulting on payments is the usual reason for a bad credit history, while bankruptcy will "drastically affect" the chances of being given credit.

But Mr Howard added that being rejected by one organisation due to a poor credit history does not mean there is no chance of success elsewhere.

Research by finance website MoneyExpert.com, carried out by YouGov, has shown that nearly five million applications from people seeking personal loans or new credit cards have been rejected in the past six months.

Approximately 56 per cent of people in the UK, or 25.8 million adults, have made such an application in that time.

Of those, 13 per cent were refused a credit card and six per cent were denied an unsecured personal loan.

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