Author: Simon Duffy
Your credit rating is basically your personal finance history, whatever accounts and forms of credit you'd had in the past and any missed payments, defaults or notices on those accounts are marked on your credit rating.
Your credit rating is basically your personal finance history, whatever accounts and forms of credit you'd had in the past and any missed payments, defaults or notices on those accounts are marked on your credit rating. Finance companies use credit reports to see how individuals manage or fail to manage their bank accounts, credit cards, personal loans, mortgage payments even mobile phones. This helps the lenders to gain a profile of the kind of customers they're more likely and less likely to lend money to in the future. But can you really protect or make your credit rating better?
First off you should always tell the truth whenever you're applying for credit. In the end it will only be you that suffers if you cannot afford to make the repayments on a debt. This is the first basic rule of lending, don't fool yourself - can you really, honestly afford to make the repayments? If you lie on an application form lenders can easily find out and it could be deemed as a fraudulent application which will cause problems for you in the future.
Don't apply over and over again with different lenders, this will only leave a trail of rejected applications behind you. Each time you make a new application the lender will see on your credit rating how many times you've already applied and which lenders you've applied to. If you feel that you might be able to get a more competitive quote from another finance company then ask for just that - a quote. Then you can go on to make a formal application. If the finance company say they need to run a credit check to give you a quote then ask them to make sure it will only show up on your credit rating as a quotation search, rather than a credit application search.
Your credit report will also show other people with whom you have joint accounts or any form of joint credit. Obviously these people could be ex-partners that you no longer share a relationship with. Make sure you keep you credit report up to date by telling the credit agencies to remove the people who are not financially connected to you. Lenders may look at the credit ratings of financially connected people on your credit rating and if they have a bad credit rating you coul dbe affected.
You should always check your ID, if there is anything suspicious looking like applications you can't recall then let the agency know. Infact if you find anything in your credit report that you think should not be there then write to the credit agency and ask them to amend it or let you know exactly what it means. For example if you have settled a CCJ then make sure this is showing. You need to ensure the corrections you have made your efforts to clean up your rating are being shown.
The easiest way to keep your credit rating clean is to make your payments every time, on time. Even if the payment is just a few pounds it shows that you are responsible with your finances and can budget correctly. If you think that you might miss a payment in the future then contact the lender immeadiately, burying your head in the sand will not help the problem and things will only get worse.
About Author
Simon Duffy writes for the Financial Blog a UK Finance Blog talking about all aspects of personal finance including loans blogs.
Article Source: http://www.1888articles.com/author-simon-duffy-7656.html
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