If you’ve tried to apply for a credit account with a catalogue before and you’ve been refused, you may be wondering what went wrong.
After all, they’re designed for people who can’t pay for things upfront or have a bad credit score, so how can you be refused?
However, there’s more that goes into the approval process for a catalogue credit account than just your credit history. Things like ID checks, affordability, a thin history, and recent applications all play a role in whether you’re approved.
Today, we’ll run through some of the most common reasons for rejection of a catalogue credit account and what you should do next. If you’re looking for catalogues that will likely accept a low credit score, browse our list.
1. Your address details don’t match
This is one of the most common (and most frustrating) reasons people get refused, because it can happen even when your credit history is improving.
When you apply for any credit account, the provider will do a check of your details against information held by credit reference agencies (CRAs) and public records to confirm your identity.
If the address you have listed doesn’t match the address on your credit file, the system won’t be able to match you properly. Even a small mistake with the address can lead to a decline or a request for more checks.
What to do
- Use the same address format you use for your main bank account and bills.
- Raise any address errors with the CRA.
- Check that there are no typos, e.g., “Road” vs “Rd” and “Street” vs “St”.
2. You’re not (yet) on the electoral register at your current address
A lot of people get caught out by this, especially if you’ve recently moved, you’re in a flat share, or you’re renting and your bills aren’t in your name.
Most catalogue providers use the electoral register as part of an identity and address check when going through your application.
If you aren’t listed at your current address, it can be harder for them to match you correctly, leading to a refusal even if you’re doing everything else right. Some councils update records monthly, so if you’ve only just registered, there may be a slight delay.
What to do
- Make sure to re-register after changing your address.
- Contact your local council’s electoral services team or register again online at GOV.UK.
- Pause new credit applications until it’s updated.
3. Recent missed payments, defaults, or court records
While a low credit score doesn’t mean that you won’t be accepted, a lot of missed payments in the last few years can affect your likelihood of approval.
Catalogue accounts are credit, so the provider is trying to gauge how likely you are to keep up with repayments. If you’ve continuously shown that you can’t make repayments on time, some lenders will see this and think you can’t handle another credit account.
If you have a recent default due to multiple missed payments or a court order requiring you to pay a debt, this will further impact your application.
What to do
- Set up a Direct Debit so you don’t miss any payments.
- Ask for a reduced payment plan if you’re juggling bills.
- Pay off any defaults and ask for written confirmation that it will be marked as satisfied.
- Pay off a CCJ within one calendar month, as this can remove it from the public register.
4. You have a limited credit history
Sometimes you can be denied a credit account simply because there isn’t enough information on how you can handle credit repayments for the lender to go on.
If you’ve never really used any credit accounts, you’ll have a limited credit history, also known as a thin file. A lender wants to see proof that you can handle repayments, so a thin file means a provider can’t confidently make a judgement on this.
What to do
- Open a current account with a major UK lender so your data is more likely to be shared and show on your credit history.
- Put one regular bill in your name and pay it on time (e.g., a mobile contract or broadband).
- Build up your history with small limits and predictable repayments.
5. Too many applications in a short period
Applying for too many credit accounts at once can make lenders think that you’re relying too much on borrowing money to get by.
Some catalogue applications also involve hard credit checks, which leave a visible record on your credit report so other lenders can see you’ve recently been applying for credit. This can affect your credit score for about 6 months.
Too many applications can appear as though you’re struggling to get accepted elsewhere, and it shows a likelihood that you’ll miss repayments.
What to do
- Wait a while in between applying for different credit accounts.
- Use eligibility-checking tools to avoid hard checks.
6. Affordability doesn’t stack up on your income and outgoings
If you’re spending more than you can comfortably borrow, and you’re not bringing much money in, then lenders are less likely to approve you.
An affordability check considers factors such as your income, monthly commitments, existing credit payments, and other daily expenses. If your outgoings are already high for your income, lenders aren’t going to trust that you can make repayments on time.
People who freelance work and whose income fluctuates from month-to-month may also struggle being accepted, as it’s harder to predict if you can afford it.
What to do
- Set up a better budget plan to limit outgoings.
- Clear or reduce “buy now, pay later” plans if you have several running.
- Avoid taking on new monthly contracts right before applying.
- If you’ve just moved or changed jobs, wait a while before applying.
7. High existing debt or high credit utilisation
High existing debt or credit utilisation can look risky on paper, even if you’ve never missed a payment.
If you already owe a fair amount across credit cards, overdrafts, loans, etc., or you’re using a large chunk of the credit limits you already have, it can look like you’re over-relying on credit, which can put lenders off.
What to do
- Keep your credit utilisation under 25% to increase your chances of being approved for new credit.
- Pay down balances that are close to your credit limit.
- Pay more than the minimum amount to decrease interest.
8. You’re financially linked to someone with poor credit
Unfortunately, our own spending habits aren’t the only thing that can affect our credit score.
If you have a joint credit product with someone else, mispayments on their behalf can stay on your credit report until you ask for them to be removed (once you no longer share finances).
This could be a joint mortgage, loan, bank account, or credit agreement. Because you’re linked, the lender may decide your household finances could be under strain, or that repayment risk is higher and refuse the account.
What to do
- Close joint accounts, or have them converted into one person’s name.
- Ask for financial associations to be removed if you no longer share finances.
Get approved with Catalogues Bad Credit
When you’re ready to try again, Catalogues Bad Credit can help you compare catalogue options that may be more suitable if you’re rebuilding your credit.
We will point you in the right direction to catalogues that will most likely accept you, even with a low credit score. That way, you aren’t guessing and hoping for the best.
You can browse, pay weekly, pay monthly, and buy now, pay later catalogue credit accounts to find the best option for you.