The Frustration of Being Declined for Credit
When you apply for any type of credit and get refused it can be a bewildering and frustrating process as you won’t be informed of the reasons why. There are many areas that can adversely affect your credit score and make it very difficult to get things such as mobile phone contracts, credit cards, personal loans and more.
Your repayment history plays a big role in helping any future potential lender decide if you’re going to be a reliable borrower. The obvious things such as CCJ’s and defaults will be flagged up but missing repayments on other borrowings will also influence your credit score in a negative way. The impact of any missed or late payments will lessen over time if you have been consistently making the payments for around 12 months since the last one you missed.
Applying for too much credit will also have a negative influence on your credit score. Every time you make an application for credit, it’s recorded on your file and too many applications in a short period of time will set alarm bells ringing with lenders and they will consider you someone who is desperate for credit. If you have recently made a spate of credit applications then it’s advisable to not make any more for at least 6 months in order to try and redress the balance.
The Electoral Roll is another factor that lenders check whilst gathering information about you. If you’re not on the Electoral Roll as being a resident of your application address then it’s extremely unlikely that you will be offered any credit. If you’ve moved house for example, then your new details will need updated on the Electoral Roll before you make any new applications for loans, credit cards or any other type of credit.
Accommodation also plays a role in determining your credit score. Lenders like stability and continuity and if for example you’ve changed address 5 times in the last 2 years, you won’t have had any real time to build your credit score at any of those addresses and as such, pose a greater risk to the lender.
Your employment history is more appealing to lenders if it’s stable and settled. If you’ve had periods of unemployment or changed jobs every year, then this will have a detrimental impact on your overall credit score.
To summarise, lenders are looking at the stability of all the elements surrounding your financial situation from your previous repayments, your home and your job in order to make an accurate assessment of your suitability to pay back any money you borrow on time.
If you’ve had credit problems in the past and have found it hard to make repayments, then Debtsolver may be able to help you.
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