Common reasons an application for credit may be turned down
You have a limited credit history
If you’ve little or no experience with credit, even if you have a good income, your credit score may be low, simply because there’s little to indicate how well you’ll manage borrowing and repayments.
You don’t have regular income
You could have a better chance of being offered credit if you’re employed and/or have a regular income, or have money left over from any disability benefits.
Low disposable income after outgoings
Managing money and bills can be hard enough, without also having debts to repay. Lenders may check what you can reasonably afford, based on your income, outgoings and existing borrowing.
Your past account history
Lenders usually keep records about accounts you’ve held with them in the past, including information about how well they’ve been managed. Things like late payments can affect your eligibility.
A good credit score can help
Your credit score may paint part of the picture that potential lenders assess when deciding whether to lend to you..
The credit reference agencies Lloyds Bank work with include TransUnion, Experian and Equifax. The information they hold helps us to understand your track record of using and managing credit, spanning at least 6 years.
Factors which can affect your credit score include:
County Court Judgments (CCJs), Individual Voluntary Agreements (IVAs), and bankruptcy.
Making multiple credit applications in a short period of time.