I Have Been Turned Down For A Loan Or Credit Card, Will I Still Be Able To Get A Mortgage?

If you have been turned down for a credit card or loan, then you need to find out why your application was rejected before you apply for a mortgage.

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Am I Eligible To Apply For A Card?: If you meet the following criteria then you are eligible to apply for a credit card in the UK:
What APR (Annual Percentage Rate) will I receive?: APR is the Interest Rate charged to your account on any balances not paid off by the date shown on your statement each month - meaning that if you pay your balance off in full every month you will never need to pay interest on your purchases.
How is interest calculated?: Interest is calculated on a monthly basis on the outstanding balance if full payment has not been received.
Why is it worth making a Balance Transfer?: If you have a large outstanding balance on one or more credit and store cards – you will undoubtedly be able to save money by transferring your balance to another credit card.
How much can I Balance Transfer and how long does it take?: Most credit card companies will only allow you to make a minimum of £100 balance transfer either from or to your credit account, because of the administration involved.

Every lender has different criteria and many more factors are taken into account when applying for a mortgage – such as your salary and ability to pay. It may also depend on who you applied for your loan or credit card with. If they are a lender who will not consider anyone who has any black marks on their credit history, then you may still find that another high street lender would have given you the go ahead for the credit card or loan.

Find out which credit reference agency the credit card or loan company used, and contact them to see a copy of your credit report. You will then be able to ascertain what the problem is, fix it if possible, and then use that knowledge when you apply for your mortgage. For example, if you can amend your credit report then you will be free to apply for a mortgage with any lender. If your credit report retains the ‘black mark’ then you will need to apply to a lender which allows those with a bad credit history to borrow from them, and accept the slightly higher borrowing charges. Once you have been paying your mortgage for a few years your credit rating will have returned to normal, and you will be able to remortgage with a regular lender at normal, competitive rates.