Poor Credit Score- A Close Look-zibba

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. All the information regarding the credit history of people in UK is available with these agencies. Only after enquiring the credit score with these agencies, any finance company would offer a loan to a person. The amount of loan sanctioned and interest rate to be paid would be decided by the lenders based on the credit score. One in four of the people in UK are having a poor credit score. This might be because of many reasons like, county court judgments, arrears in mortgage repayments, defaulted or missed payment of any loan previously taken, individual voluntary agreements, bankruptcy etc. Joblessness, grief or a divorce could also result in poor credit score (Credit cards for bad credit, 2007). 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 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. Thus a poor credit score denotes a poor credit history of a person. Such information regarding each and every person is available with credit recording agencies. Only after a credit check with these agencies, the lenders would give loan to a person. Therefore a poor credit score for a person would mean a greater difficulty in getting loan and higher interest rate he has to pay. Whatever loan you are in search of, the lender will be giving primary importance to your credit history. It is your credit score that tells everything about your credit worthiness. Based on the information listed in your personal credit report, a lender will either refuse or approve your loan request. Credit reports are thus important for several reasons. The likelihood of a good credit applicant for defaulting on the loan is low. And so lenders will particularly be interested to provide such people with what ever loan amounts they ask. If you are having a bad credit history it is wise to mend it at the earliest. To begin, you must make an effort to pay credit accounts on time. If you have past due accounts, contact the credit lenders and negotiate getting the accounts current. This may involve the lender extending the length of the loan. Moreover, pay down the balance on credit cards. Limit your amount of credit inquiries. If you have recently filed bankruptcy, open new credit accounts and begin rebuilding credit. If you have too much debt, consider consolidating all your bills into one loan. But this does not mean that bad credit history prevents you from getting a loan. These days you can find lenders who provide bad credit holders alone, with loans. Even though bad credit loan lenders are there in the market, it is always and always advisable to have a good credit rating. 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. You may have to pay higher interest rates in return. The terms and conditions are going to be somewhat severe. After all, the lenders are accepting a great risk!! About the Author: 相关的主题文章: