Your credit rating or score is what is important when you apply for a loan in any financial organization as that is what the lender sees as based upon that, your loan is approved or rejected. It is important that you take some time out of busy schedule to ensure that your credit rate is accurate and if it is not so, then work towards improving it as it does not only essential for getting the best mortgages and credit cards but it also important when it comes to mobile phone contracts.
Why bad credit repair is important?
Having a bad credit history can limit the number of your borrowing options. Missing a credit card payment or any other defaulted payments would leave a mark under your name and that would make it difficult for you to apply for loans or mortgages. If you apply for a credit card and you are tuned, that might be because you have a bad credit score. Hence, bad credit repair is really important.
How to check your ratings?
There are many lenders and they make use of the ratings of various credit reference agencies and these agencies compile your credit histories from various sources like the County Court Judgments, electoral roll etc. and how you repaid your past debts.
Every time you seek a new credit, it would be maintained electronically under your name. Rejections for loans and mortgages are not decided by the credit reference agencies and it is upto individual lenders as whom they approve and whom they do not.
How to improve your credit score in UK?
There are many ways by which you can improve your credit score and some of them have been discussed below:
* Ensure that all your debts are registered under your current address and your current name.
* Make sure that there is no mistakes in your credit file as in the debts or payments of other people
* Also register your current address on the electoral roll.
* Also avoid making too many applications for loans and credits in a very short period of time and that also includes mobile phone contracts. Lenders consider this as desperation and hence, should be avoided.
* Also request for credit to lending companies from where you are likely to get the same. Go for a ‘quotation search’ rather than a credit search to understand this.
* Be a responsible borrower for credit repair in UK.
