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It has never seemed easier to borrow money, so if you do get turned down, the obvious question is "Why?" swiftly followed by the nasty suspicion, "Maybe I'm on a credit blacklist".

The credit blacklist myth

The good news is that you're not. In fact, there's no such thing as a credit blacklist. But there is a host of reasons why you might be rejected.

Common reasons why you might be rejected a loan...

Your credit report has worried the lender.

This unique, personal record of your credit history could show that you already have a number of loans and the lender may be worried that you will not be able to repay another.

You may not fit the lenders profile

For example, a credit card issuer may only give cards to people who already have fewer than three, or a mortgage lender may specialise in first-time buyers.

You have bad credit

According to Datamonitor, the independent market analyst, more than one in five adults in the UK are deemed to have poor credit. They may include the self-employed, others who cannot provide sufficient proof of income, people who have outstanding county court judgments (CCJs), defaults, arrears or those who have had their homes repossessed for non-payment of mortgage.

You move around

Credit companies look for stability - for example, living at the same address for at least three years or having a long-term relationship with the same bank. So, if you move around a lot or switch banks often, this may tell against you.

Your credit score wasn't high enough

There are a number of reasons you might be turned down. A low credit score is one of the more common reasons as whenever you apply for credit, the company you apply to will normally give you a credit score based on information in your credit report, your application form and any details they have if you're already a customer. Get your Experian Credit Report and Score* at Experian CreditExpert.

*A monthly fee of £14.99 applies after your free trial. You may cancel during your 30 day free trial without charge.

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