If a lender is searching your name they may come across a warning against you if someone has used your financial or personal details in fraudulent way or used your name to apply for credit and forged your signature. It will also show a warning sign if you have committed something fraudulent.
In order for this information to be visible, the lender will need to be a member of CIFAS (which is not a credit reference agency), it is a fraud prevention service used by financial companies and the public authorities to share the information about fraudulent activity. This is information that helps prevent fraud in the financial industry.
If the lender comes across a warning against your name it will just mean that they need to carry out further checks before agreeing to your application, which may involve you providing extra evidence to identify and confirm you are who you really say you are. This could delay the process but is done to ensure that you don’t end up owing money you don’t owe.
Here is an article from the Money Advice Service that has some interesting information regarding identity theft and scam.
If you are refused credit, it will be wise to check your credit reference file before you apply for another credit card or loan so you can check to make sure all the facts about you are correct, which could affect your scoring if they are wrong. A court judgement or a poor record payment in your name will also affect your credit record. If you do check your reference file and notice there is some incorrect information on there you can get this changed or removed and can then add a correction notice to explain any special circumstances.
You may decide to apply to other lenders although you will need to be aware that whether they accept you or not they will leave a trail on your credit file. This could potentially affect your credit, as lenders may assume you have lots of borrowing or have been refused by other creditors and may put them off.