Credit card rejection can come as a nasty surprise – you thought your credit rating was fine, the application form was filled out properly, so why has the company turned you down? The sense of rejection, especially from companies that practically guaranteed approval, can leave a bitter taste in the mouth. But there is hope. Just because you’ve been turned down doesn’t necessarily mean you have a poor credit rating; it could be a simple mistake such as an error on your report or a mistake regarding your address. And mistakes can be easily rectified.

Lenders are required by law to send you a letter telling you exactly why your application for credit has been denied, but sometimes these letters can be a little vague. So the first thing to do is make sure that the credit card company denied your application for a legitimate reason. Although mistakes are uncommon, they can and do happen. If you feel that the reason given is not legitimate grounds for denial, you can take action. The lender is also required to send you a document giving you the name of the credit agency that provided your credit details to the lender. If, when you check these details you come across inaccuracies, then it is essential that you contact the credit agency direct to inform them of the error. A simple mistake could be impacting on your finances much more than you are aware. It could be this small mistake that the lender sees as legitimate reason for refusal, and that’s a situation that is easily rectified.

For a small fee, all UK credit agencies will send you a complete report of your credit history. This includes details on your address, occupation and income as well as financial history and credit background. The agencies are required by law to correct any mistakes highlighted by consumers, making sure that details are accurate and up to date. Once you have rectified any errors you can reapply to the original credit card lender or even appeal against the initial rejection, although these cases rarely succeed. It may be wiser to wait a little while and then resubmit an application.

Credit ratings or ’scores’ as they are commonly mislabelled, are mysterious tomes, usually the preserve of banks and ‘the System’. However, every consumer has the right to access their records from any of the credit agencies holding details on their financial activities. Your credit rating is affected by your previous financial history over a number of years, including loans, repayments and how you have run your financial affairs. ‘Black data’ (details of late payments, defaults, CCJs or other failings in your credit track record) is shared between financial lenders and can impact on your eligibility for future credit. Increasingly, ‘White data’ is also being exchanged as well. White data tells lenders about your financial management skills and how attractive a borrower you may be. Surprisingly, it doesn’t always work in your favour. Someone who always clears their monthly credit card balance isn’t going to incur any interest charges and as such is not as attractive a proposition to lenders, who depend on those interest charges to make a profit.

Credit card application denial can be the result of a range of issues, from the simple to the complex. Something as basic as forgetting to send off your electoral registration can mean that your credit rating drops – the credit card company simply doesn’t have any proof of your address. Mistakes like this can be rectified easily, improving your chances of being accepted next time you apply for a credit card. If you are turned down repeatedly by several companies it may indicate a bigger problem with your credit history. This isn’t the time to bury your head in the sand and hope it’ll get better on its own. You can take positive steps to rectify the situation. By making sure you pay your bills on time, pay off debt rather than shifting it around and managing your score, you can stay in charge of your credit rating.

If you have been rejected for a credit card, don’t reapply straight away. Give yourself a cooling-off period of about 90 days to get your financial house back in order. Check your credit history for any errors and prove to the lenders that you aren’t a credit risk by rectifying any problems that led to the initial rejection. Avoid multiple applications in the hope that one of the companies will let you slip through the net. A plethora of rejections on your credit history will do more damage, meaning you have to wait even longer to get back into the lender’s good books. The only ways to improve your chances are through good financial management, an eye for detail and a willingness to take back control of your financial affairs.