Credit Information
The Grabber's
credit information section, covers credit
ratings and their effect on lenders accepting applications for
finance.
It is not difficult to emphasise the importance
of an individuals credit rating, one wrong move and you could find
future attempts at getting finance more difficult or even find
you are refused.
Even applying for finance is recorded on your file
by the credit reference agencies, and could affect a lenders
decision.
Being refused finance even effects the success of any further
applications because the denial should be noted on your
application. Having a problem credit rating makes it harder to
get finance from a lender because they score applicants on their
financial history, including
the credit rating, when they do a credit check.
Credit Checks
When you apply for any finance the lender performs a credit check on
you. They are looking to see if you are a reliable person who
will repay their obligations on time.
The credit check helps lenders in assessing the level of
risk they are taking in granting your request, and also
has some bearing on how much you are charged for the
finance.
Your credit history file is kept by credit reference
agencies and the lenders contact these to study your credit
history.
Credit History
Your credit history file started the day you opened your first bank
account, and records every financial transaction you've made.
Included is your credit card use or any applications for
credit cards, every late payment you have made or any current
arrears you owe, your mortgage repayment history and every loan you're had
or are still paying off.
Most of the information comes from companies you've dealt with,
some from
sources like the electoral roll, which reveals information like your address.
As you can see your credit file contains your financial
history and you can see how this can be used to assess how trustworthy
you are. Your credit history could determine whether a
lender accepts or refuses an application.
Refused Finance
With problem credit, it is possible applications get refused by
lenders. They could decide your rating is just too low and
aren't willing to risk lending to you.
Lenders don't have to tell why you were refused, except you
failed their scoring process or the credit reference agency gave
them the impression you are a credit risk.
If you want to find out what information these agencies have,
then you can write to them asking for a copy of your file. There
is a fee and they will need your details, then the agency will
send you a copy of your file within a week of receiving your
letter and fee.
Once you have the copy of your credit file, you can see if any
mistakes have led to a worse credit rating than necessary. If
you spot mistakes on your file you could contact the credit
reference agency and have them rectify them, or add a note to
your credit file explaining any circumstances. Many people with
problem credit ratings look at credit repair agencies to see if
they could clean up their credit file.
Credit Repair Agency
You may have seen the adverts from credit repair agencies
claiming they can help people with problem credit ratings. If
you have problem credit because of your financial history, they
claim to be able to have some of the entries on your credit file
cleaned up. It is important to note that these agencies can do
nothing that you can't do yourself.
Trading standards receive many complaints each year about credit
repair agencies that charge people hundreds of pounds and then
fail to live up to their claims.
Once you have a copy of your credit file you could look to see
if there are any mistakes to be corrected, any CCJ's on your
credit record that have been discharged should be noted as such.
There are many things you can do to ensure your credit file is
accurate and up to date, which may lead to an improved credit
score.
Credit Scores
When you apply for finance the lender applies for your credit
file report from the credit reference agencies, and reward
points based on their scoring system.
The lender wants to see how you have managed your credit
obligations in the past, to help determine if they should
approve your request for finance now, and helps them determine
the rates of that finance.
The scoring system varies between lenders and will take account
of many criteria with emphasis placed on particular details. A
high score would mean you are more likely to pay on time and
aren't in danger of defaulting on payments. A low score means
you are considered a risk and have a problem credit rating.
Problem Credit
Having a problem credit rating does not mean you will struggle
to get finance for the rest of your life. As the saying goes
time heals all, and this includes credit ratings.
If you have CCJ's they will stay on your file for six years and
then no longer show up. If you pay a judgement order in the
first month of its issue this is noted immediately on your
credit file. Make attempts to improve your finances and your
problem credit rating should improve also.
In the meantime, with patience it could be possible to get
finance from one of the companies or web sites specialising in
impaired or problem credit.
Finance with Problem Credit
Some lenders will accept requests for finance from people with
problem credit ratings.
But if you have a problem credit rating how do you find these lenders?
You could try
the high street lenders, visiting each in turn until you find
one to approve your application. Or you could look
on the internet, doing a search for lenders who give
people with low credit ratings a fair chance.
Either option should eventually uncover a lender willing to
accept your application, but how many miles will you have to
trudge before you find them, or how many web sites must you try
out.
Apply Online
The Grabber provides a selection of easy to use application
forms below,
The Grabber is here to help
you apply for finance even if you have problem credit.
We specialise in providing financial solutions for UK residents
with problem credit ratings. With our easy to use application
forms you can apply in a couple of minutes and save yourself
hours searching online, or travelling between the high street
lenders.
When using the grabber to apply, your case is considered separately
by an advisor for an independent panel of brokers. Because they
are independent they have access to many plans and products
which should increase the chances of you finding finance for
your rating.
You don't have to build up a large credit file full of
rejections for finance, the advisor will consider which products
are suitable for you, before presenting you with a free no
obligation quote.
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