At My Sort of Loan we think it`s important that you understand what we may be able to do for you and what information we look at when we select a loan solution for you. So, if you`re looking for a loan you may be thinking which factors will help to give you a good credit rating. Recently talk is more about how high or low your score is as oppose to good or bad. In reality `score based` lending models vary a lot by each lender - so focusing on core elements of your profile to aim for a good, fair or improving credit rating overall is a good idea.
We have covered many of these aspects on this page - created through our experience in dealing with a multitude of loan applications from people with all sorts of credit ratings. Better still you can speak to our UK loan team about your scenario without obligation and confidentially - to get a really good handle on just where your profile sits and which loan plans are available for you from our lender panel. Call our UK based loan team to take out a competitive loan for your credit profile on free phone 0800 0159 295 / 0330 0536001 (mobile friendly) or fill out our short online enquiry form and we will get cracking on the loans available for your scenario.
Many of us fret about our own credit rating and what our credit file says about us. It could be that you`ve had some feedback from finance companies, banks or building societies of credit ratings and been told that yours is too low or that you need to work on improving your credit status. But just what is a credit rating? How does it affect you in real terms and is there anything that you can do about it? After all if there`s something being said about you, shouldn`t you get a say too?
Well here`s some good news, you can view your credit profile and rating any time you like for free so you can see what`s being said about you and before you ask there may be things you can do about the credit rating that it contains. Let`s take a look at some of the aspects within your credit search that you might struggle to understand at face value and the information it gives to the UK lenders and loan intermediaries who read them.
Take Control of Your Credit File - use Equifax or Experian to get a copy of your credit file. They have to provide this to you for a nominal cost (around just £2) and getting it does not affect your credit rating at all. Study it and match all the items to your known credit. If anything looks wrong or is not yours contact the search provider or lender to challenge it. If it is a genuine mistake it can be changed.
Repair Your Credit Profile - You can`t make your credit history go away but you can help to improve your credit rating by settling any unsatisfied CCJ`s and / or defaults that are showing. County Court Judgements and defaults within the last 4 to 6 years usually contribute largely to a bad credit rating. Clearing them shows you have recovered your finances to some degree and in time (usually 6 years) they will drop off.
Don`t Be Late Or Miss Credit / Loan Repayments – Mortgages, credit cards, loans, second mortgages / secured loans, higher purchase and other credit you have will be listed on the report. It will show the last 2 years of payment history. If you have missed none you will see a neat row of `0` s. This is a great help for a good credit history. If you have missed one payment in a month it will show as a 1 and if you then miss another it will go to a 2. If you have any `credit arrears` bring them up to date as soon as possible, the more zero`s you have since you last missed a payment the better your credit rating will become.
Use Your Credit Search To Find A Brighter Future - Once your credit score starts to improve you can use it to get better rates on your credit application, a better job or a professional membership to help your career along. If you see issues that you can`t clear without borrowing and / or are struggling with cash flow it may be worth looking at a credit repair or debt consolidation loan. These can put your credit into one manageable monthly payment and enable you to get a better credit rating. However the interest will usually be more over the term and the key is not to build up the balances again on credit you have consolidated.
The first thing to understand is that when you get your credit rating is that it`s just a number, so what`s in a number? Well quite a lot really, you see often when you apply for credit it isn`t always the case that a human being ever sees your application. The good news is that at My Sort of Loan a person will always looks at your credit file if we believe our lenders can help - so with us it`s not just a case of `computer says no.`
Your credit score is a number and it is usually between 0 and 999 depending on which system your creditor uses 0 being low / bad 999 being high / good. Bear in mind your score will vary based on the lenders preferences, there is not a universal score that all lenders use for you. At My Sort of Loan we have products for clients at each end of the scale and in between but credit score isn`t the be all and end all of what a credit search shows about you and it isn`t the only thing that we rely on when we arrange a loan for you. Find out more by talking to one of our qualified UK loan advisers on 0800 015 9295.
You will be asked permission to carry out a credit search to enable a lending decision to be made. You may think that`s just what lenders do to get my credit score right? Nope. Your credit search is a record of everything that you have done financially for the last 6 years. It also usually shows which companies have carried out a `credit search` against you and exactly when. This is why applying to multiple companies in a short period can reduce your credit rating, almost a domino effect, one says no so the others follow. So don`t authorise a search unless you are committed to needing the loan, mortgage or finance. Filter who you would like first and if you get declined get some advice on what to do before you go applying all over the place.
On the search your lender or adviser these numbers range from 0 to 6 or sometimes there`s a letter such as an I (means under arrangement),S (meaning settled) or D (meaning the account is in default) . Basically these letters and numbers tell lenders what state your account is in and how well it`s been conducted. Where there is a CCJ registered or a default showing it will also state whether it is satisfied or not. Satisfied adverse / bad credit is better than unsatisfied. A zero means up to date, 1 is one payment behind and so on up to 6.
A credit report has a few other tricks that help us find the right kind of loan for you. For instance a credit search can show us how long you`ve been on the electoral register at both your current address and previous addresses so anyone looking at it can build up a picture of where you`ve been living for the last few years. Now you might not like that but having a good address history and being on the voters roll can contribute very favourably towards your credit score / rating. Similarly a credit search tells advisers if you`ve have any county court judgements, are in an IVA or if you have been declared bankrupt.
Again if you have settled a county court judgement this can increase your credit score too, in fact My Sort of Loan often arrange finance to settle county court judgements. If you`re worried that a difficult couple of years are affecting your credit rating and score it may be worth calling My Sort of Loan on 0800 015 9295 to see what we can do to improve both for you.
You see a credit score isn`t just about getting credit, it can be used for a number of applications such as job applications, club memberships and professional qualifications to name but a few. So when you ask what a credit search has to say about you it really can say a fair amount and you probably want it to cast you in as good a light as possible.
So if you are concerned that your credit rating or credit score is preventing you get a loan you require, My Sort of Loan has a panel of lenders who may be able to help. Why not call one of our qualified UK homeowner loan advisers free on 0800 015 9295 and talk about your options.