What To Do If You Fail a Credit Check

23rd May 2025

A failed credit check can really ruin your plans to get a loan for a new car or take out a mortgage and buy your first home. There are a huge range of factors which can affect your credit score and it’s not always obvious why you’ve been turned down.

If you have been made bankrupt, or have numerous CCJs against your name, then you probably know why you’ve failed a credit check. Other factors which could affect your chances of success are less well understood, such as having debt which lenders think is too high relative to your income or applying for lots of different credit products in a short period of time.

Where Credit Checks Might Impact You

You might have to undergo a credit check in more situations than you might think. Credit checks are often used in connection with property, when taking out a mortgage to buy a house, or when a landlord is assessing whether you are a suitable person to rent too. You will also go through a credit check when taking out a personal loan or a credit card, or even a contract for a pay-monthly mobile phone. Some employers will credit check applicants too, especially for jobs in the financial services industry, or in jobs where you have access to cash or customer accounts.

What to Do If You Fail a Credit Check:

If your credit check comes back as a no, don’t panic. There are things you can do to try to find out what went wrong, and stop it happening again.

• Check Your Credit Report: Ask one of the big agencies for your file, look for errors and dispute any inaccuracies.
• Look for Specialist Lenders: Some lenders specialise in lending to people with below average credit scores, but the downside is that they often charge more.
• Ask the Lender for Feedback: Contact the lender to understand why your application was rejected – although they are not legally obliged to tell you.
• Build a Positive Credit History: Make a plan to never miss payments and work to improve your credit score over time.

How Long Does a Failed Credit Application Stay on Your Record?

Credit applications (whether approved or denied) usually stay on your credit file for up to two years. However, if you take steps to get your finances under control and improve your credit score, one failed application may not have a serious impact.

If you have a County Court Judgment (CCJ) on your credit record, it might make getting a loan or other credit harder, but it’s not an automatic dealbreaker. Some lenders may still be willing to work with you. There is lots of information online about building your credit rating but be wary of companies claiming to solve all your problems instantly. It takes time to rebuild your credit rating but every month you go without missing a payment and going into your overdraft will work in your favour. Expect to see real improvements after six months.