How to check your credit rating

Being turned down for a credit or store card can be embarrassing. Being turned down for a mortgage can be devastating if you have saved hard and are desperate to buy a home. The main reason why you will be refused is because you have a poor credit rating.

Credit information on millions of UK adults is stored by two agencies, Experian and Equifax.

Loan providers check out the information they hold and it is also accessed by some letting agents and employers.

The information held by Experian and Equifax comprises your credit history and will include details of unpaid bills, county court judgements (CCJs) and any previous applications for credit you have made.

Lenders often operate credit scoring systems to allocate points to the information on your file along with the information on your application form, such as your age, job and whether you are a homeowner.

Criminal - including motoring - offence details are not held on record.

If you are turned down for credit, you should contact Experian and Equifax - for a small fee they will send you a copy of your credit file.

One reason why some people are turned down is that they are not on the electoral roll, which exists as proof of address. If you are not registered, you should arrange to do this as soon as you can so that the details show up on your file.