|
When you apply for a loan, your credit score ratings play a key role in deciding whether you are eligible for the credit or not. When you apply for a loan, your credit score ratings play a key role in deciding whether you are eligible for the credit or not. The credit score is calculated by taking into account the credit report submitted by credit reference agencies and the information you supply on your application form. Using the information received, the lender will calculate your credit score. Each lender has its own formula of calculating the credit score. Depending on the credit score, the lender decides how much to lend you and what interest rate is to be charged on the credit. If you have a good credit score, you are more eligible to get the loan granted within a short span of time and that too with comparatively lower rates. In case you have a bad credit score, you will not get the full amount that you wish to borrow, and the interest rates will also be higher. So it is important that you have a good credit score. There are many methods to improve your credit scores. First of all, if your application for credit gets rejected, check if your credit report is correct. If there are any mistakes, notify the lenders immediately. Similarly if you find an application that you have not made, you must inform the lender, as you may fall victim to identity theft. If you have a financial association such as joint account, credit card or mortgage with someone else, then the lenders will also search your associate’s credit details to see if their financial situation is likely to affect your repayment of credit. If one of your associates has a poor credit history, there will be some problem in getting the credit. Another important thing is to register in the electoral roll. Lenders often refer electoral roll to get your details like who you are, where you live, your present address, etc. So whenever you change your house, register in your new address as soon as possible. You must always try to keep your credit searches to a minimum, because every time you apply for a credit, the lenders will search your credit file, and each credit search is recorded on your credit report. So the more credit searches you have, the less chance you have of getting a credit sanctioned. Making your payments on time and always providing the true information when you apply for a credit are some other ways to increase your credit score ratings. Author: The article is particularly written for Credit Checking. For more information you can visit Free Credit Checks and can get some more about it.
Related Articles -
Credit Checking, Credit Check For Free,
| 
