11:39 17 October 2013
While evaluating your application for a credit card or a loan, your lender will always make sure your credit score looks good. It comes down to this. If your credit score is poor and if you want to have better chances of getting your loan application approved, you will need to improve it.
What are the steps to improve your credit score?
CallCredit, Equifax and Experian are three credit reference agencies where you can obtain a copy of your credit report. It is best that you obtain a report from each of them because they do not have the same information about you.
Found some mistakes in your report? Get in touch with the Credit Reference Advisor to get it corrected. If they don’t act on your claim, you may request for a notice of correction which you need to add in your file anyway to discuss why you believe the entry is incorrect.
Having too many applications at the same time can have a negative effect on your credit score. If you have submitted too many applications for loans in a short span of time, it may be perceived by the lenders as getting desperate for funds and that you are in a financial trouble.
To be included in the electoral roll, you will need to register to vote even if you don’t actually like to because it can boost your credit score. You may verify this with the Electoral Commission at www.aboutmyvote.co.uk
Lenders want to know how you have managed your credit in the past. If your credit history offers them a little idea about how you have been managing your credit, then you could be given a small amount of loan with normal interest rates. You can start building up your credit history or fix up a tarnished one.
Last but not the least; never pay any company to improve your credit rating because you can simply do it for free.
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