I recently applied for some finance to buy some home appliances but was knocked back. Does the credit provider have to give me a reason?
I recently moved into a house and needed to furnish it so applied to buy some kitchen appliances on credit but was knocked back. Does the lender have to tell me the reason or can they simply refuse and say nothing?
The reality is that any time you get rejected on a credit application is that the lender does not feel you can make the repayments. That’s pretty much the bottom line – so there is your reason.
MoneySmart is a great website to learn more about why the lender may think this. Or you could call your lender to ask – for example: if the reason is because they think you are unemployed when you’re not, an easy solution would be to provide proof of employment.
Another temporary workaround until you are held in good stead with lending agencies could be to add a guarantor to your card – you would need to talk to the bank about that.