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Prior to tackling the main body of the article, here is a number of definitions of common terms linked to the topic. Bad credit rating : When you apply for a loan, the prospective lender will look closely at your credit report to determine your credit eligibility. He will then give your application a credit rating which may be excellent, good or bad. If you have a bad credit rating, it can prove challenging to get credit. A credit rating is considered bad when you have a weak credit history. Late or ignored repayments and CCJs (County Court Judgements) will reduce your credit score. A credit record is, in essence a documented history of any type of credit that you have taken out within the past 6 years. It discloses how much you have been lent and if you have defaulted on any obligations etc. A credit record helps possible loan providers to see your financial past in order for them to make a decision as to whether to grant you a loan. The data on your file is collected by credit reference agencies for example, Experian and Equifax. They incorporate facts and figures from public sources (e.g. the electoral roll, legal judgments etc) and from loan providers as well as financial institutions: e.g. credit applications, credit accounts. Prime lenders are applicable for consumers who have developed a positive credit record. Prime lenders normally give the most reasonable interest rates and also the least charges for borrowing money, conditional on you satisfying their requirements. In the event you have delayed or defaulted obligations on other sorts of credit within the past six years, it is not very likely you will be accepted by a prime lender. In the event you are given approval and your financial history is not up to par, then you will, in all likelihood, pay a higher percent than others with a perfect financial record. When you see the term a 'sub prime' lender, this is a loan provider who gives loans to people with adverse or poor / bad credit ratings. A normal client of a sub prime lender is anyone who finds it hard to get funds from other traditional lenders. This would be due to them having gone through financial conflicts in their history and now earning an adverse credit rating. Sub prime mortgages are sometimes referred to as Non conforming mortgages. If you find that you have been declined credit due to having a poor credit report (also known as a credit rating or poor credit score), then don't despair. There are ways that you can improve your credit file, but you must be aware that it does take time and patience. However, the positive news is that once your credit report is looking better, you will find that it opens more doors for you, making it easier to get credit and at more favourable rates. First and foremost, get a copy of your credit report from one of the major credit reference agencies, such as Equifax, Experian or CallCredit plc. The cost starts from around �2. Check your file for any inaccuracies - maybe there is a satisfied debt that is still showing as outstanding or maybe there is someone listed as a financial association who you no longer have financial ties with (such as an ex-partner)? If you see anything on your credit file that you do not agree with, then contact the relevant organisation. Check that you are shown on the credit report as being listed on the Electoral Roll - this proves where you reside. If you are not on there, then this will affect your credit report negatively. Once your credit report is in order, tackle the other side of things! Make sure that all your bill payments are made on time so that your report is squeaky clean. If you do get declined for credit, find out why - do not go applying for credit elsewhere willy-nilly as this will look like you are having financial problems to a potential creditor.
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James Miller has written plenty other articles that are either directly about tenant loan refused and extended loan with bad credit or about car loan comparison.
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