The lending process is relatively straightforward: you fill in an application form which the lender assesses before deciding whether or not to offer you a loan.

When a lender assesses your application, they may give you a credit score. They do this by taking into account your personal circumstances as detailed on the application form as well as your credit history which they can obtain from a credit reference agency. The lender gives each element a score. If you reach a certain level, then they will offer you a loan.

The length of time between application and actually receiving money depends on the type of loan. Unsecured loans are typically quicker to arrange than secured loans.

For security reasons, a lender will not give any reason for declining a loan application. If you are refused a loan, you may check your credit history, for a nominal fee, by contacting a credit reference agency. They will amend your credit record if any of the information contained is incorrect.

If you are refused credit, do not harangue the lender. They are not under any obligation to offer you a loan. In fact, they would argue that they are simply encouraging more responsible borrowing.