It’s natural to wonder what goes on behind the scenes, where the powers-that-be hold your financial future in their hands. Daunting and foreboding it may appear, but it’s actually surprisingly straightforward.
So to help shine light on this somewhat foggy matter, we’ve created a brief yet informative guide covering how lenders decide to give credit or otherwise.
As the name suggests, your credit score is indicated in a simple numerical figure. This alone is enough for many lenders to determine whether or not you’re eligible for financial support.
Almost every financial activity that takes place in everyday life impacts your credit score. When you demonstrate responsible financial habits, your credit score increases. When you miss payments, delay payments or attempt to live beyond your means, your credit score decreases.
The higher your credit score, the more likely you are to be accepted and gain access to the best deals on the market. Nevertheless, maintaining a sky-high credit score simply isn’t within the means of millions of everyday consumers.
However high or low your credit score, PoorCreditCarFinance.co.uk will do whatever it takes to find your perfect vehicle finance product from an extensive network of specialist lenders!
A far more detailed record of your financial activities, your credit history provides a cross-section overview of your recent track record. Lenders are able to access your current credit history through one of the three primary credit reference agencies – Experian, Equifax and CallCredit.
In doing so, they can determine from the information available whether you’re a candidate for credit. If you have a history of borrowing more than you can afford to and failing to meet your repayment obligations, you’re unlikely to qualify. If your credit history paints a more agreeable picture, they may accept your application. When lenders examine the finer details of credit reports, they may determine eligibility by way of overall merit. Nevertheless, many simply see a less-than-perfect credit score as grounds for refusal, without considering the current financial circumstances of the applicant.
There’s a fair amount of information held about you behind the scenes, which sadly you can’t do a great deal about! Just a few examples of the entries your credit report may contain include the following:
Details your entry to the electoral register and the address you used at the time of registration.
If any county court judgments have been issued against your name or you’ve declared bankruptcy, this will appear on your credit report.
Details regarding all existing bank accounts, credit cards and general lines of credit are presented.
Your payment history and track record with utility service providers, mortgage lenders, hire purchase agreements and so on will also be included.
Details of any previously owned properties that were subsequently repossessed.
If you hold any joint accounts or credit facilities, these associations will be detailed and could affect your credit score.
The vast majority of credit checks carried out in your name and their respective outcomes are recorded on your credit.
Information detailing your previous places of residence, if you haven’t lived in your current home for long.
If you have fallen victim to fraud in the past, this will be indicated on your credit report to help protect you from future harm.
When dealing with a damaged credit report, it can be difficult to know where to start. Luckily, there’s plenty you can do to help steer things in the right direction.
Here at PoorCreditCarFinance.co.uk, we work exclusively with the UK’s most dynamic specialist lenders, providing accessible financial solutions for poor-credit applicants.