For many of us, getting a loan, a new credit card, or a mortgage has never been easier, but this is not true for everyone. No one has an automatic right to credit - indeed many people are turned down every year and in most cases they do not know why.

When someone applies for credit, lenders will want to check if they are an acceptable risk. They do this by using credit scoring and/or consulting credit reference agencies. Credit scoring works by giving points to various pieces of information, such as age, employment, home ownership and credit history.

Lenders may also give points to information provided by credit reference agencies - who keep information about almost every adult in the UK.

There are steps that can be taken to ensure a credit application is more likely to succeed. For example, credit reference agencies keep a record of the searches made each time credit is applied for - too many applications might imply financial difficulties. Proof of residence and how long a person has lived there is important to a lender. Similarly, a positive application, such as for home improvements or a holiday, is likely to find more favour than an application to pay off debts. Lenders like to see a history of using credit sensibly, so someone who already has a number of credit facilities may well prove more attractive than someone who has never applied for credit. Everyone has a right to see the information held by credit reference agencies on payment of a small fee. There are two main agencies. You are entitled to have incorrect information deleted. However, you cannot have correct information removed just because it is affecting your credit rating. If you have arrears, or County Court judgements, these stay on the file for six years, but you may be able to add a notice of correction to explain if these have been subsequently paid or why you experienced difficulties. If you think you have been refused credit because of the credit history of relatives and you have no financial association with their debts then you can add a notice of disassociation to your files.

For more information about this or any other consumer matter contact City of York Trading Standards on 01904 551562, email them at trading.standards@york.gov.uk or call at 9 St Leonard's Place. their fax number is 01904 551590.

Updated: 09:30 Thursday, September 05, 2002