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Before a lender grants a loan they examine certain details about you and give you a credit rating. If you have a good credit rating , you get a loan; if you have a bad credit rating or poor credit rating, they will refuse to lend you cash or grant you a credit card but that is not quite the end of the matter.
You should be aware that every time you apply for credit, the lender will search your personal file held by credit reference agencies, and every search is recorded on your file. Many people are are not aware of this, or even that such files exist. Records of several searches on your file will raise questions about "over-commitment" or even, lack of responsibility or possibly fraud.
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However, if you are experiencing problems there are several steps you can take to improve your own credit rating and improve your chances. Your credit status may not always be the cause of a refusal - it may be insufficient information, so it is always worth contacting a lender or checking your credit rating online to see if there is more information that you can contribute which may make a difference.
"Non Status" is a phrase used to describe a situation where there is a non-existent, impaired or low credit history. Ex-patriates returning from employment overseas, for instance, may have no credit history in the UK which may be a problem, but there is much you can do to improve matters .
Impaired or low credit history may include County Court Judgements (CCJs), Arrears, an Individual Voluntary Arrangement (IVA), Insolvency or past Bankruptcy.
Every lender has a different system of "scoring" a credit rating, which is confidential, but the sort of information they look for is designed to give them confidence that you, your lifestyle and financial history make you a good "credit risk".
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