If you have had some issues with paying back credit in the past, which have resulted in a less than perfect credit history, you may be concerned that you will not be able to easily borrow money in the future. To make this more complicated it is not possible for you to work out whether lenders will accept your application for credit as each one will have different customer requirements. There is no universal system for working out credit scores which means that although you may not have been approved by one lender it doesn’t mean that no other lenders would be willing to accept your application for credit.
However, if when looking at your credit history there are quite a few late or missed payments, if you have been declared bankrupt or are on an IVA, it is less likely that you will be able to borrow more money due to the risk that the lender would be taking. This may also be the case if you are seen to be paying off the minimum amount each month as this suggests that you will be unable to afford any further payments.
It may surprise you to learn that those who have never borrowed are also unlikely to be accepted for credit as they will have a very short, or nonexistent, credit history. Lenders would prefer to lend to those who have proven that they can pay back debt rather than those who have never owed any money to lenders previously. A short or nonexistant credit history makes these potential customers hard to assess which could lead to them being turned down.
There are ways in which you can improve your credit rating and hopefully increase your chance of being approved by a lender in the future. For example, making sure that any outstanding payments are made and ensuring that you keep up to date with these payments. If you think that you are going to have trouble making a payment on time you should always contact the lender. They may be able to do something to help whereas ignoring the problem will not make it go away, it will only make the situation worse.
You can check your credit history with a credit reference agency and check that all information is up to date including your personal details. You must also make sure that you are on the electoral roll and remember to occasionally check your accounts for identity fraud to ensure that your credit rating is the best that it can be.
Just because you have a poor credit history it does not necessarily mean that you will not be able to borrow from anyone. You may be accepted for a ‘bad credit’ loan or credit card. Don’t worry, there is nothing bad about the loan or credit card, the ‘bad’ refers to your credit history. These methods of borrowing are convenient if you need a small amount of money over a short period of time but it is important to shop around as interest rates can be high. This is because lending to you could be risky but as long as you can make the repayments on time this could be a great option for you.
If you think that a ‘bad credit’ loan could help you please contact www.Best4Loans.co.uk via their website or call them on 0844 344 5177 and they will be happy to find the best available option for you.
By Sasha Davison
23rd January 2014
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