If you have a poor credit history, or not enough of a credit history, credit providers are likely to reject your application.
When you apply for credit, either a credit card, loan or mortgage, your credit provider will run a credit check to check your history of repayments. They'll be looking for evidence that you're a responsible borrower who'll be able to make their repayments.
Any information is usually held for between 5 and 6 years. But items like court or bankruptcy rulings might stay on your file for longer.
Providers are generally unwilling to take risks on people who do not have proof of a good credit history.
There are several reasons you might have been refused credit.
You've missed repayments
The more missed repayments you have, the worse your credit rating. And the less likely you are to be offered credit.
If you've missed a repayment in the past, your credit provider will record this and report it to the credit reference agencies.
Next time you want to borrow money from another provider they'll run a credit check. The provider will see that you’ve missed a repayment. And will use that information to decide how likely you are to make your future repayments.
You're not registered on the electoral roll
When you're registered on the electoral roll, it tells your credit provider that you live where you say you do. It helps prove to them that you're not a fraudster.
If you're not on the electoral roll, in the eyes of the lender it increases the chance that your application is fraudulent.
You're financially tied to someone else who has bad credit
If you've ever taken out a joint credit product with someone else, like a joint bank account this could influence your own credit rating.