Posts Tagged ‘credit rating’
Sorting out defaults on your file
The biggest issue will always be past credit defaults. It is very difficult to get any credit if you have a default registered against you. However, if you believe the default to be unfair contact the company that issued the default is not fair and clearly state your reasons. If that fails contact your Financial Ombudsman. Most countries have one so check it out. If they find that the default is unwarranted then they can see to it that it is removed from your credit file.
Settle Your Debt
Can you negotiate a settlement? Pay some or all of the debts? Contact the lender and talk with them. You can set up a meeting if the lender is prepared and discuss this face to face. If the lender agrees to your proposals try and make it a condition that the default is cleared from your credit file. All lenders are able to do this so don’t be shy to ask.
Submit a ‘Notice of Correction‘
If you have taken every other step and nothing has worked and you firmly believe that the defaults is unfair then add a ‘Notice of Correction’ to your credit file. You will need to put in an explanation and a justifiable one.
Remember : Any credit application you apply for will take extra time if a ‘Notice of Correction’ is added. The lender will have to undertake a manual check. This is however; better than being turned down right away.
Get rid of old or unwanted Cards and Accounts
If you are able to access credit that you do not use this can cause issues with lenders. If you have credit cards that you do not use anymore cancel them.
Beware : If you are a long standing customer of a Bank with a good strong credit history it can be of great help, so leave it open and try and use it once in a while. A good idea is to hide away a little in savings for that holiday. Having separate accounts can be useful for this type of activity. Got a little money tucked away? Pay your debts off The less debt you have the less the lender will see on your credit file. By reducing your debt level regularly it will indicate you are able to pay even if the entire amount is not paid off.
Remember : If you can try and consolidate your credit. But we aware, the idea here is to reduce the amount of interest you are paying. One of the biggest debts most people will have is their mortgage. See if you can save money and pay off large proportions of it. Next time you want a mortgage you can negotiate a better deal. Getting credit anywhere is difficult. Make it easier on yourself, undertake a Credit Check and if something does show up that is adverse to your credit rating take positive action where you can.
Got a little money tucked away? Pay your debts off
The less debt you have the less the lender will see on your credit file. By reducing your debt level regularly it will indicate you are able to pay even if the entire amount is not paid off.
Remember : If you can try and consolidate your credit. But we aware, the idea here is to reduce the amount of interest you are paying. One of the biggest debts most people will have is their mortgage. See if you can save money and pay off large proportions of it. Next time you want a mortgage you can negotiate a better deal. Getting credit anywhere is difficult. Make it easier on yourself, undertake a Credit Check and if something does show up that is adverse to your credit rating take positive action where you can.
Getting a Quotation
Quotes are difficult to get without lenders undertaking a credit search, but do ask anyway.
Remember : If a credit search is undertaken by a lender this will appear on your credit file. Applying for any financial product puts fresh data on your credit file which ultimately affects your credit score. Be careful where and when you apply!
Are you a Safe Investment?
Profiling potential loans is big business. You have more chance if you own your own home rather than being a tenant. Equally being gainfully employed rather than being self-employed has a significant impact. If you have been with the same employer for a long period of time and a long standing customer of a bank will also go a long way in helping your credit rating.
Check Your Credit File
It is important to check to see if the data you use is consistent. Check telephone numbers you have listed in applications. Check your addresses also. Inconsistent information can play havoc with your credit rating.
Avoiding the downward spiral
This is one scenario you want to avoid at all cost.
• You make an application
• Your application is rejected
• You make applications elsewhere
• Your application is rejected yet again
There must be something wrong and you must check your credit file. Once you have made any amendments, that is providing any can be made, and assuming everything is put right.
• You make an application again
• You are rejected
This time it is not due to any errors. However because you attempted on several occasions to get credit all these show on your credit file and therefore lenders will reject your application. The moral of this is DO NOT simply try and try again. Take a look at your credit file and get it fixed. Ask the lender which agency it used to assess your application and contact that agency.