How lenders decide whether to approve your credit application

When you enquire for a loan, mortgage, credit card or any type of finance the lender who you are asking to borrow the money from will gather a large amount of information on you and your situation they will also carry out a credit check to view your borrowing history.

Each Lender will consider a multitude of factors to decide if your credit application should be approved, these factors depend on your past borrowing and payment history, living situation (homeowner, tenant, living alone, married), employment situation and history (how long have you been in your current job / are you self employed), how much you earn and how much you wish to borrow. They will consider all these factors and if you meet there credit criteria you will be approved the loan and work your way through the credit process until your funds are released, if you fail to meet the criteria then you will be refused the loan / mortgage / credit application. If you have been declined this does not mean there are no finance options available just that you do not meet the criteria of that specific lender. First Choice Finance give access to multiple lenders from personal loan providers through offering £3,000 through to mortgage lenders offering £1,000,000 mortgages, enquire online to receive a no obligation free quote.

Does Being Refused Credit Affect My Credit Rating>

Yes credit applications both approved and declined will affect your credit rating, if you are applying to multiple lenders they may carry out a credit check that will leave a footprint on your credit history, multiple credit searches are a flag for other lenders that may make then less willing to accept your credit application. When you enquire for a loan with First Choice Finance we will discuss your needs and requirements as well as your current credit situation, we will not submit your enquiry for a credit check unless we feel confident you will be approved, we have multiple lenders not just highstreet lenders but also specialist lenders for borrowers with possible credit issues.

Refused A Loan But Have A Good Credit Rating

If you consider yourself to have good credit but have been turned down, there are a number of possible reasons for this. These include lack of credit history, if you are not a frequent borrower and not paying out many bills the lenders will have no history to make their decision on, other reasons include frequent changes of address, new job or maybe lack of affordability depending on your monthly income and outgoings. If you are looking to borrower are larger amount you may be considering a home owner loan, in which case your equity in your property will be a factor. Whatever the reason, it may be worth considering contacting us at First Choice Finance we have helped thousands of borrowers who have had difficulty obtaining finance, we will discuss your needs and requirements and will feel confident you will be approved any credit application before we carry out any credit check.

First Choice Finance benefits from excellent external support, with close partnerships with our lenders providing just the right solution. First Choice Loans & Mortgages have access to plans from numerous lenders both the highstreet and specialist lenders not available directly. First Choice will advise and make recommendations for you, only after fully assessing your individual needs

Mortgage Advice

First Choice are mortgage specialists will explain the whole house buying process in detail, from making an offer through to the day you move in. By advising on how much you can afford, we will make that stressful first-time purchase seem easy. Being equipped with this knowledge before you look at houses will also make it far simpler to deal with estate agents. Best Deal - If you already have a mortgage in mind, we will advise you on how it compares with the wider mortgage market. It`s always reassuring to know the deal you prefer really is the most suitable for you!

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

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Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.