Source: Telegraph: Our consumer champion has received countless letters about rejected credit applications. She lists reasons for rejection, including who you keep as Facebook friends


A credit file profile is not the only reason for having a credit application refused. There may be other less obvious causes for a rejection.

Not on the electoral roll

The electoral roll is something to which lenders turn for confirmation that the applicant is who they say they are. Not being registered on it can lead to a refusal for credit.

Make sure there is uniformity in your address details

Check the address is formatted consistently. There could be problems if Royal Mail’s postcode address file and the electoral roll don’t match. Disparities in address details can mean a lender turns you away.

Social media
Would-be lenders might check you out on social media and if the vibe from you or even your friends seems irresponsible, this might reflect on their readiness to lend to you. [Read more: How your Facebook friends could damage your credit rating]

A lender's interpretation of earnings
One reader's bank statement showed a regular payment coming from an employer, so the bank presumed it was a wage. When the bank found out that in fact it was from a scholarship and was not technically earnings it would not then lend to her. Another reader's bank couldn't understand how his earnings, which were largely paid as dividends, were worked out and so reduced the amount it was prepared to lend for his mortgage.

Not being able to produce the right paperwork to establish identity
Problems can arise in meeting identity requirements. For example bank statements and utility bills downloaded from online may well not be acceptable when it comes to proving who you are. A utility bill needs to be recent so some bills, such as a water bill which does not come as frequently as bills for some other utilities, may not be suitable if it is dated some month...................Read more here