Every lender has a different idea of what makes the perfect customer. This means that there is no hard and fast rule as to what makes the ideal person to lend to. What lenders do have in common though, is that they will use your credit score as a guide about your financial situation, and they will know what score they deem acceptable, even if this isn’t the same across all companies. The better your credit score however, the more likely you are to get credit, and the higher this is, the more companies there will be who will be happy to approve you. If you find yourself refused credit, then you may want to take steps to increase your score, to improve your chances of getting credit in the future. This isn’t as hard as it sounds, and there are some really easy things you can do to help.
Even with the best credit score in the world, if you are not on the electoral roll you will have a tough time getting approved for finance. Companies use this to validate your address and residential status, and also to track back across your address history. If you know you aren’t on the register, then the first thing you should do is print off the online form, fill it in and send it back. It can take a little while for your credit file to be updated with this information, as updates are only done monthly, and it can take even longer than this to show on public records.
Having inactive accounts that you know longer use but that remain open tells potential creditors that you have unused credit available to you. If you don’t intend to use a certain card or account again, then you should call or write to the provider and ask for it to be permanently closed. This will also protect you from any fraudulent transactions being carried out in your name using these details and accounts. It is always best to know exactly what you hold and where.
Make sure that any financial institution you have dealings with has the correct address for you. This means all bank accounts, catalogue accounts, credit card providers, anyone who you have finances with has the right address. When you move, putting a forward on your post will get your letters to you, but it will not reflect on your credit report, and inconsistencies look bad to creditors.
If you are working to repair your credit score, have done the above, but are waiting on some longer-term fixes, then there still companies who will grant you credit. There are institutions like Loans Direct who will offer members access to credit providers tailored to your own credit rating and situation, help with improving and tracking your credit score, and much more. Loans Direct refunds customers who aren’t happy with the service and only charge membership to those they believe they can match to a loans provider.
Bill Turner is a technology guru and freelance writer. He is a avid trainer and marathon runner and animal rights activist.
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