Refused a loan after an affordability check?
If you’ve tried to take out a loan or refinance existing debts but your lender has refused after doing an affordability check, you first need to decide whether you really need to borrow more. Could you manage without further borrowing?
Being refused credit can often be a sign that you need help with money, especially if you have other debts that you’re struggling to manage.
What happens if I give wrong information to a lender?
It’s important to give accurate information to your creditor if they’re checking affordability.
It might seem tempting to miss out expenses or exaggerate your income to get accepted for a loan or to increase the amount you can borrow, but this could make your situation a lot worse if you borrow more than you can realistically afford.
Some lenders will refuse an affordability complaint if they think you gave them inaccurate information when you applied. However, you might be able to argue that they should have done more careful checks, such as asking for bank statements or wage slips.
In addition, giving false information on application can cause problems with future credit applications. Some lenders use a fraud prevention service called
National Hunter which can flag up discrepancies on previous application forms.
Worried about money?
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