Limit Your Amount Of Credit Inquiries

Category: Finance, Credit.

A poor credit score in UK means a bad credit history a person have, which is rated according to its severity, by consumer credit information agencies like Experian and Equifax. Only after enquiring the credit score with these agencies, any finance company would offer a loan to a person.

All the information regarding the credit history of people in UK is available with these agencies. The amount of loan sanctioned and interest rate to be paid would be decided by the lenders based on the credit score. This might be because of many reasons like, arrears in mortgage, county court judgments repayments, defaulted or missed payment of any loan previously taken, bankruptcy etc, individual voluntary agreements. One in four of the people in UK are having a poor credit score. Joblessness, grief or a divorce could also result in poor credit score( Credit cards for bad credit, 2007) . Thus a person having a poor credit score could gradually improve his score by repaying the loans without any fault continuously for a particular period of time depending on his credit history.

Late payment of a bill would be recorded in the file for three years and bankruptcy and Country court judgment for six years after which it would not be counted. Thus a poor credit score denotes a poor credit history of a person. Only after a credit check with these agencies, the lenders would give loan to a person. Such information regarding each and every person is available with credit recording agencies. Therefore a poor credit score for a person would mean a greater difficulty in getting loan and higher interest rate he has to pay. It is your credit score that tells everything about your credit worthiness. Whatever loan you are in search of, the lender will be giving primary importance to your credit history.

Based on the information listed in your personal credit report, a lender will either refuse or approve your loan request. The likelihood of a good credit applicant for defaulting on the loan is low. Credit reports are thus important for several reasons. And so lenders will particularly be interested to provide such people with what ever loan amounts they ask. To begin, you must make an effort to pay credit accounts on time. If you are having a bad credit history it is wise to mend it at the earliest. If you have past due accounts, contact the credit lenders and negotiate getting the accounts current.

Moreover, pay down the balance on credit cards. This may involve the lender extending the length of the loan. Limit your amount of credit inquiries. If you have too much debt, consider consolidating all your bills into one loan. If you have recently filed bankruptcy, open new credit accounts and begin rebuilding credit. But this does not mean that bad credit history prevents you from getting a loan.

Even though bad credit loan lenders are there in the market, it is always and always advisable to have a good credit rating. These days you can find lenders who provide bad credit holders alone, with loans. From personal loans, debt consolidation loans and credit cards, they are all now available in one form another to borrowers with a poor credit history. The terms and conditions are going to be somewhat severe. You may have to pay higher interest rates in return. After all, the lenders are accepting a great risk! !

Read more...

How Do You Know What These Codes Mean - Finance and Credit:

Less than 6% of the population in the United States can brag about having FICO credit scores above 80 It s an elite club.

What Is A Business Credit Card - Finance and Credit Articles:

Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card.

Credit Card Is A Usual Tool For Shopping And In General, Most Financial Transactions The World Over - Finance and Credit Blog:

Credit card is a usual tool for shopping and in general, most financial transactions the world over. This refers to the balances on your account.