It’s a horrible feeling to have your credit application denied but it doesn’t mean it’s forever, there are ways to improve your credit rating for next time by understanding what it is and why you have been declined.
How Does A Credit Rating Work?
Different banks and building societies use different ways of calculating your credit score which is based on their own analysis of your credit history. Your report will take into account any store cards you’ve had, credit cards if you’ve got a mortgage, any loans or car finance.
How Do You Check Your Credit Score?
Before applying for credit, you can check your credit score online. There are many websites where you can do this either for a small fee or on a free trial basis, remember to cancel it before the trial ends.

Remove Yourself From Financial Partners
If you have taken out a joint mortgage or bank account in the past, then you become “financially linked” to the person you’ve taken it out with. This means that if that person has a bad credit history, then it could impact yours. Make sure if you are no longer with that person that you let the credit reference agencies know so that their status no longer has an impact on yours.
Make Sure You’re On The Get Electoral Roll
This will improve your chances of being accepted for credit because prospective lenders and credit reference agencies use the electoral roll to check that you are who you say you are and you live where you say you live. Although sometimes it can’t be helped, if you have been at the same address and been employed by the same employer and been at the same bank for an extended period then this will help you to pass a KYC check and get your credit score up too.
Close Unused Accounts
If you have any credit cards, store cards, mobile contracts or accounts that you don’t use or need any more then close them by actually contacting the provider and closing it officially.
Don't Miss Repayments
If you miss or make late payments, then these can go on your credit file for up to six years to make sure you’re on time. If for some reason this happens out of your control, then as long as you pay it as soon as you can then talk to your credit provider to see if you can get this black mark removed.
Pay Off Debts
If you can, pay off more than just the minimum payment as this shows good behavior and shows any future lenders that you are managing your debt well.
Use A Credit Card To Build Your Credit History
It might sound crazy to go and get a credit card, but lenders need to be able to asses you somehow and this is the way they do it. You need to manage it well and make a few payments each month and pay them off as this will show that you are responsible and able to handle a credit card.