Why You Keep Getting Rejected for Credit Despite a 'Good' Score

One of the most frustrating experiences in UK personal finance is being turned down for credit when your credit score looks healthy. Many people assume that a high number from a Credit Reference Agency (CRA) means lenders will accept their application — and then find themselves repeatedly rejected without a clear explanation. This article explains why that happens, how the UK credit system actually works behind the scenes, and why a "good" score on its own does not determine the outcome of a credit application.

A credit score from Experian, Equifax, or TransUnion is not what decides whether a lender accepts or rejects an application. Lenders — not Credit Reference Agencies — make the final decision on every credit application.

Each lender applies its own proprietary criteria, and there is no universal "pass mark" or standardised credit score threshold used across UK lenders. A score labelled "Good" or even "Excellent" by one CRA is simply that agency's own interpretation of your data. It does not bind any lender to approve you.

In short: your CRA score is a guide for you. It is not the test that lenders use.

The UK credit application process involves three distinct participants, each with a different role.

1. Credit Reference Agencies (CRAs): They collect and hold data about individuals' financial behaviour: payment histories, outstanding debts, court judgments, electoral roll registration, and other public and financial records. The three main CRAs are Experian, Equifax, and TransUnion. Each agency generates its own credit score using its own scoring model and scale.

   • Experian: 0 to 1250 (legacy 0–999).
   • TransUnion: 0 to 710.
   • Equifax: 0 to 1000.
   • Note: These scores are tools for consumers — they are not scores that lenders use directly.

2. Lenders: Banks, building societies, and credit card providers request data from one or more CRAs. They then combine that data with their own internal criteria, which may include:

   • Affordability modelling.
   • Income verification.
   • Existing customer data.
   • Commercial risk appetite.
   • As Experian states: "Every lender or credit provider has a different set of requirements and criteria."

3. The Applicant: The individual whose data is being assessed. Under UK law, applicants have rights to access and challenge the data, but not to know the precise internal criteria a lender used.

This means a person can have a high score with all three CRAs and still be rejected, because the lender's proprietary assessment — which weighs factors the CRA score does not fully capture — reaches a different conclusion.

Understanding the regulatory framework helps clarify why the system works as it does.

FCA "Creditworthiness" (CONC 5.2A)

Under FCA rules (CONC 5.2A), lenders are required to conduct a "reasonable assessment of creditworthiness" before entering into a regulated credit agreement. This assessment must consider two things:

1. Credit Risk: The risk to the lender of not being repaid.
2. Affordability Risk: The risk that the borrower cannot sustainably meet repayments without financial hardship. These rules have been effective since 1 November 2018.

Adverse Data Retention

Several types of information can remain on a credit file for fixed periods, contributing to rejection even when the overall score appears healthy.

• County Court Judgments (CCJs): Remain for six years. If paid within 30 days, they are removed. If paid later, they remain but are marked "SATISFIED".
• Defaults: Remain for six years from the date of default, regardless of whether the debt is paid.
• Hard Credit Searches: Remain for approximately 12 months. Multiple hard searches in a short period may be viewed negatively.
• Individual Voluntary Arrangements (IVAs): Appear for six years from registration.
• Debt Management Plans (DMPs): The plan itself is not recorded, but the missed payments leading to it will be visible.

Statutory Rights

Under the Consumer Credit Act 1974:

• Section 157: Creditors must disclose the name and address of any CRA consulted, if asked in writing.
• Section 158: Individuals have the right to inspect their credit file.
• Section 159: Individuals can request incorrect info be removed or add a "Notice of Correction" (up to 200 words).

"My score is good, so I should be accepted."

This is the most widespread misunderstanding. CRA scores are consumer-facing summaries. Each agency uses a different scale. No lender is obliged to treat any particular CRA score as a threshold for approval. A "good" rating from one agency carries no guarantee with any lender.

"If one lender rejected me, I must have bad credit."

Lender criteria vary significantly. A rejection by one lender does not mean all lenders will reach the same conclusion. However, each application generates a hard search, and multiple hard searches in a short period may be viewed negatively.

"I've never missed a payment, so nothing can go wrong."

Having no negative marks is different from having a positive track record. A limited credit history — a "thin file" — means lenders cannot assess repayment behaviour. This often affects young people or those new to the UK. A thin file can lead to rejection despite the absence of adverse info.

"My credit file only reflects my own finances."

Financial Associations matter. If you hold a joint account with another person, a financial association is created. Lenders may check the credit history of anyone financially associated with you. If they have poor history, it may affect your application. You can request "Disassociation" from CRAs only after closing all joint accounts.

"Lenders can only see what's on the credit report."

Not always. Lenders (especially for mortgages) may review bank statements or use Open Banking.

• Example: Gambling transactions do not appear on CRA reports, but are visible on bank statements. Lenders may view regular gambling as a risk factor in affordability assessments.

Self-Employed Applicants

Self-employed applicants often face additional scrutiny. Income may be assessed as "too volatile" even with a strong track record. The affordability assessment (CONC 5.2A) applies equally, but the evaluation of variable income differs from salaried applicants.

Electoral Roll Registration

Used by lenders to verify identity and address. Absence from the electoral roll can delay applications or cause rejection.

• Note: Individuals not eligible to vote (e.g., certain non-UK nationals) can add a Notice of Correction to explain this.

Scottish Decrees

Decrees differ from CCJs. A Decree in Scotland remains on the credit file for five years, whereas a CCJ remains for six years in the rest of the UK.

Notices of Correction

A Notice of Correction (up to 200 words) allows you to add context. However, its presence often forces a manual review of your application, removing you from instant automated approval processes.

The gap between "good score" and "accepted for credit" exists because the score is a simplified summary, while lending decisions are complex, multi-factor assessments. A CRA score does not capture:

• Affordability: Income vs Expenditure.
• Existing Commitments: Total debt load.
• Product Criteria: The lender's specific target market.

Each hard search is recorded and visible for ~12 months. Repeated applications in quick succession can become a negative factor.

Rights: You have the right to know which CRA was consulted (Section 157) and to ensure data is accurate. You do not have a statutory right to a specific explanation of the commercial decision to decline you.

• Scores are not Decisions: CRAs provide data; Lenders make decisions.
• No Universal Pass Mark: A "Good" score guarantees nothing.
• Affordability is Key: Income, expenses, and job stability matter just as much as history.
• Retention: Defaults/CCJs stay for 6 years; Hard Searches for 12 months.
• Rights: You can inspect your file and dispute errors, but you cannot force a lender to reveal their exact scoring formula.