Credit card

Applicants might even get offered an entirely different product than the great offer they originally applied for.

Scoring systems differ from one lender to another, but it is possible to manage and improve the factors which may contribute to your score.

Step one: Get informed. Find out where you currently stand. There are three main credit reference agencies; Equifax, Experian and Call Credit and you should check all three. You have a statutory right to see your credit reference files by simply writing to the agencies with a £2 fee.

You can also apply online, but this can be costly. To apply, or download an application form to post, contact www.econsumer.equifax.co.uk, www.experian.co.uk and www.callcredit.co.uk.

There is also a loophole which will allow you to check your ratings for free at Equifax and Experian. Both offer a month long 'free trial' for their credit monitoring services which involves setting up a Direct Debit. So sign up, view your file for free and then cancel the subscription immediately.

Step two: Correct errors. Check your credit files to see that your debts are listed correctly, your present and past address details are correct and whether there are any inaccuracies on your repayment history. If you disagree with anything, write to the agency to request it is changed. If the agency refuses to amend the file you are entitled to add your own comments as a ‘notice of correction’ which you should make concise and factual. This might delay future credit applications, but should help you get better deals.

Step three: Improve your score. Credit searches leave notes on your file whenever you apply. If you do too many in a short space of time it will effect your score, so try to space out applications for car insurance, mobile phones, credit cards and so on.

You also score better when you are earning, so if you are taking a sabbatical, or suspect redundancy looming, apply beforehand. Cancel all unused credit cards and accounts, as access to too much credit can be problematic. Finally, keep up all repayments on current deals and never be late or it can cause problems which prevail for years.

Step four: Deal with rejection. If you are falsely rejected because of an error, don't simply apply elsewhere, resolve the error. Otherwise you will quickly get to the stage where you are rejected because of the number of searches, not the original mistake.

If there is a real problem in your credit history, or you have defaulted in the past, you may have to resort to signing up for a 'high risk' card with a correspondingly gruesome rate.

Use it for six months, spending little, but repaying in full every month and you should have built enough credit history to move back into the mainstream.