Have you been turned down for a credit card?

There's nothing worse than applying for a credit card and then receiving a letter to say your application has been declined.

So why does it happen?

Every credit card company has its own way of deciding whether to issue you with a card or not, but they all use a system known as Credit Scoring.

This involves building a credit score based on the information you provided when applying and details about your credit history that are obtained from one or more of the big three credit agencies (the credit agencies in turn get their information from banks, other lenders and public records).

Something as simple as not being on the electoral roll at your current address or not having a home telephone can adversely affect your credit score.

If your application is declined then you are entitled to ask why, and the credit card company is obliged to tell you the main reason for their decision not to issue you with a card. And if the decision was based on information received from a credit agency then they will tell you which credit agency.

The credit agencies used by credit card companies in the UK are Callcredit, Equifax and the biggest of the three, Experian.

You are entitled to know what information is being kept about you and to have any errors on your credit reference report corrected.

To obtain a copy of your credit file from any of the credit reference agencies, write with the following information:

1. your full name

2. your current address

3. any other addresses you have lived at in the past six years

You will also need to enclose a cheque for £2 made payable to the credit reference agency you are writing to.

Credit Expert, part of Experian, are currently offering you 30 days free access to your credit report online. For full details visit the Credit Expert website.

Each agency will have its own records and to get a complete picture of the information being held about you, you would need to write to all three credit rating agencies.

Callcredit Plc
Consumer Services Team
PO Box 491
Leeds
LS3 1WZ

Equifax Plc
Credit File Advice Centre
PO Box 1140
Bradford
BD1 5US

Experian Ltd
Consumer Help Service
PO Box 8000
Nottingham
NG80 7WF

If you would rather not approach the above credit agencies directly, you can obtain all three reports for £19.99 via Checkmyfile.