All the lenders worldwide check the credit rating of all loan applicants and this is no different in the UK. Every lender has its qualifiers in place so that they can find out their perfect customers. And these qualifiers differ from one lending institution to another.
Hence, it is not mandatory that if you have a loan application rejected by one lender the other lenders will also follow suit. However, if you have been a serial defaulter (whatever the reason) most lenders will not be willing to lend you money. This is simply because each lender wants to ensure that they get their money back along with the interest.
Financial companies are not in the business of lending money, but in the business of managing risks. When a lender lends money to a borrower, there is an inherent risk associated with the transaction. This risk is what the financial companies want to mitigate. Thus, when someone has a bad credit history and rating it becomes very difficult for them to get money in the form of cash loan.
If you have been refused credit by a financial institution you can always ask them to reconsider their decision. Unfortunately in most of the cases the first decision is the final decision. You can, however, request the lender to send you your credit reference file.
There are times when you feel that you have unfairly dealt with by a financial organization. This is highly possible – these organizations are run by humans and humans make mistakes, as we all know. So, what is the course of action for you in such cases?
The best course of action is to be proactive. It is best to know about your credit rating score before you apply for a loan. There are various credit rating agencies in the UK (Equifax, for example) that give you your credit report free for a period of 30 days. But even before getting your credit rating score from one of these agencies you should find in detail about how the credit rating process works and where you fit in inside this whole picture. Please visit the Information Commissioner’s Office for each and every detail related to credit in the UK.