Nine Things Affecting Your Credit Rating And You Don't Know About

April 22, 2010 - PRLog -- Getting your credit report is a great idea, for several reasons:
It is your job to maintain a satisfactory credit report and receive almost all the advantages of low interest credit and the best credit card offers, but what if you don't even realize that you have a bad credit rating? The difference between people with appealing credit score and bad one is sometimes only that the first group regularly checks their credit record.
What can influence your credit score: the not so obvious reasons you hold a chance to get refused credit?

1. Your spouse's credit score has influence to yours as well. Anybody you are living with and has bad credit might affect your credit rating. To retrieve all the information regarding to this refer to the credit reference agencies.

2. Lack of credit. This might surprise you if you have no credit on  your name, you can still get declined a finance basically because the agency doesn't  trust you, they don't have any experience you dealing with credit. It is always handy to use a little credit or overdraft  and pay it off in time to better your credit score.

3. Moving home, changing jobs, or not being traceable  i.e. no utility bills on your name, not being registered on the voters' roll.

4. Defaults in your existing credit. There might be false or misleading information in your credit file, and sometimes agencies have to update the records manually. For example you had an incorrect invoice from a company, and you complained. You were right, they agreed, but the default still makes your credit score look bad. Or often times lenders are late to make a report of a paid off balance in time, and it could still get included on your credit details.

5. Being close your credit limit always. If you don't exceed your overdraft or card limit, but you are over 75% into it most of the time, that could be an issue that could ruin your credit score. Financial services choose to look into your “reserves” as well, to discover how much credit is available for you at the moment in case you had difficulties paying your new credit.

6. Being self employed does not do any good. Especially if you just started a new business with using no previous history, you might be at risk that your credit score is poor. Self employed people are meaning a risk for companies, as they could go out of the business any time.

7. Shopping around for credit: It is all right if you obtain several quotes from different lenders, but if you do submit the application online for example (they must give you a disclosure that they are applying a credit check) it has to count towards your credit score. Now, I have seen many many  people lowering their credit rating by submitting multiple credit applications, not knowing that a couple of applications within a short period of time will be for sure making their credit so bad that they will not hold a chance to get or a new credit card.

8. You could have savings but lenders cannot really take them into account. As they are not considered  credit products, they will not get included in your report, therefore if you apply for a ten thousand pound credit and have eleven thousand in a savings account, you can easily get declined, but I advise you to contact the lender with the details, they could choose to look into your query.

9. Mobile phone contracts, car insurance. You do perhaps not think that these are indeed credits, and you are OK to miss one or two payments, but it is not the case. Unless you are paying yearly for the car insurance, it does include an interest, therefore it is credit.

You could have a spotless credit score but nevertheless still get refused credit. How is that? Basically lenders will look at your free income, and if they spot that the repayments on your extra credit might cause difficulties, they can  refuse credit.
I recommend you to find out if any of the above affairs do apply to you by ordering a  free credit report from credit reference agencies. It will not only enable you analyze your credit rating but you might discover potential fraud on your accounts as well.

# # #

I have seen many people struggle with bad credit in the UK recently. We have to find a solution for eliminating debt and starting a new, debt-free life.
More on the topic: http://www.solvemybadcredit.co.uk