Credit Ratings: The What’s, Why’s and Where to Find Solutions.
In plain terms a credit rating is the expected ability of a person applying for credit to pay it back based on their credit history.
Contrary to the popular myths there aren’t credit blacklists and universal ratings don’t exist. The lenders don’t know everything about the client just what they receive on the application form, a credit reference agency check and their own history with them, the client is a mystery otherwise.
There are three credit reference agencies in the UK, Callcredit, Experian and Equifax, it is worthwhile monitoring the credit score awarded via these sites and if people spot errors they can rectify them. This helps them with lenders and credit checks.
Every lender will rate applicants using their own criteria, history and in total confidence.
If someone has a small history there is little factual evidence for the lender to make predictions about a loan and repayments, the credit check uses the data available and the decision about credit worthiness lies in the technology and its forecast of future behaviour.
What if a client has no credit history? It appears to be a vicious circle; people can’t get a credit score and history if no one will give credit because they have no history. There are a few ways around this, always register to vote, take out a credit card and make repayments promptly, if only to get some sort of record.
Student loans also offer a way in to credit ratings. It’s vital to manage credit effectively to improve the rating and obtain future credit.
Late payments, missing payments, changing addresses often, not being on the electoral roll, an ex partner, flat or housemates ratings can all affect a person’s credit score. If bills are in multiple names, theirs, if they have a bad record, could impact on a person who would ordinarily have a better rating.
We all know that life can often be anything but simple. Did you know that your credit history is stored for six years so in 2015 a mishap from 2009 can affect lenders decisions although more weight is given to the last two years history but what if recent history is less than sparkling?
There is a solution, think about a logbook loan.
That’s a loan secured against your vehicle, effectively the vehicle is owned by the lender until the debt is repaid but the driver still has the vehicle to use as they wish during the repayment term.
Logbook Loans 247 are a trustworthy provider of logbook loans, authorised and regulated by the Financial Conduct Authority for the client’s peace of mind and we offer loans from £500 to £50000 in England and Wales with a representative apr of 279.02% and we never penalise for early repayment.
It’s simple to apply, we’ll pay a visit to check the car and make our decision, often in the same day, sometimes within just two hours!
We’re the simple effective credit answer.