If you apply for any kind of credit, your credit rating is likely to affect how successful your application is. Whether you want to get a store card or a mortgage, the lender will get information about your credit history from a credit reference agency.
Details will include information from the voter list, county court judgments, missed payments on debts, credit balances, and loan applications. Everything will be written down, from a bankruptcy to a washing machine loan. So, if you've ever had money problems in the past, you probably have a bad credit record. For example, if you haven't paid your mortgage or credit card bills on time or if your loan applications have been turned down, this will hurt your credit score.
Your credit history report will help mortgage lenders, credit card companies, finance companies, and other businesses decide whether or not to accept your application. So, if you have bad credit, you may not have as many options when it comes to getting personal finance. You may only be able to get unsecured loans with higher interest rates because the lender will see you as a higher risk. You might be able to get a lower rate on your loan only if you put something up as collateral. By using a service that compares loans, you can find lenders who are most likely to accept your application. Remember that if your loan applications are turned down, it will hurt your credit even more.
If you don't get the loan you applied for, you can ask the lender why. You can also ask for the name and address of any credit reference agency that was used to make the decision. You can check your credit history, but you will have to pay a small fee. You can make a case to change the information if you think it is wrong. Lenders in the UK use Experian and Equifax as two of the main credit reference agencies.
