BGN Entrepreneur » Credit Score

Pave Your Way to a Good Credit History

Sky — Wed, 25 May 2011 11:50:40 +0000

When deciding whether to lend money to one person, lenders will need to check one’s credit report and score to evaluate if the person is trustworthy and have a proven history of paying back money borrowed from other financial institutions on time.
So, for a people with a poor credit history, it is pretty hard to persuade the lenders that they won’t fail to pay back the money on time as last time. Getting bad-credit loans, such as Guarantor Loans, become the best option to take to solve the problem. It gives people the opportunity to re-build a good credit record.
However, don’t think that this kind of loan is only for the ones with bad credit rating. It is a good option for people with no history of borrowing money from any financing agencies. If you have never borrow money from any financial institution, you might find you are facing the same difficulty as the bad credit borrowers when facing the issue of applying for a loan. Though to you, it means that you’ve got the ability to well support yourself financially in the past, it won’t help that much in persuading the lenders to trust your capability in paying back the money. So, if you are borrowing money for the very first time, getting a Guarantor Loan help you get better interest rates much more easily and pave your way to build up a good credit history.

Correcting Errors on the Credit Report

Sky — Mon, 04 Jan 2010 22:03:41 +0000

Credit scores have a major influence on people’s life. It not only determines the interest rate one will need to pay on loans or credit cards, it is also used by many companies to grant or deny one’s amenities including cell phone contracts, life insurance policies and debt consolidation, etc.
If you have never get a free credit report before, it is time to do so now. There might be some errors of credit scores in one’s personal credit report. It might be a misspelled name or a former address or accounts mistakenly reported as past due or in default. These errors will prevent one from getting the best rates on a whole range of services.
So these errors should be identified and corrected as soon as possible. Getting your free copy of credit report from the Credit Bureau on a regular based and check it out carefully is the first step to take. Once errors are found, the credit bureau should be notified in paper, submitting along with all background materials that support the claim.
Even if the credit agency may decide against your claim due to lack of evidence or mis-communication, you are not totally out of luck. People are allowed to attach some brief statements to their credit histories to explain their versions of disputes. Such kind of consumer notes could be very helpful for one to explain the situation to convince a lender of one’s creditworthiness.

Credit Counseling

Sky — Tue, 30 Jun 2009 21:36:14 +0000

A low credit score can lead to a whole range of consequence including increased interest rates on credit cards and being denied for loans. There are a lot of different methods for people to raise their credit score, or simply keep it high if it’s already good.
It is crucial to pay the bills on time. Having a small balance on a credit card or two won’t hurt, but having a history of delinquent payments will greatly damage one’s credit record.
For people who are looking to apply for personal loans soon, it could very helpful to get some useful advice from credit counseling experts. Browse online to learn more today.

Lenders Facing Credit Re-ratings

Sky — Mon, 06 Apr 2009 00:28:17 +0000

Moody’s, the top credit rating agency is poised to re-rate the UK’s biggest banks and building societies. After Dunfermline Building Society’s dramatic collapse, some of the top ten mutuals could suffer the harshest re-ratings, which will threaten their survival as independent businesses.
Usually, societies with serious exposure to commercial property or toxic mortgage assets are the most vulnerable. So, the building societies are currently more vulnerable as they often forgo profits to give better savings and mortgage rates.
Various ratings agencies play a crucial role for banks and building societies in raising capital or borrowing from institutions like local authorities. A poor rating could sharply raise the cost of borrowing. However, the re-rating by the credit rating agency would possibly put the building societies at a disadvantage against the big banks.

Ways to Protect The Credit Rating

Sky — Thu, 19 Mar 2009 18:39:30 +0000

Your credit score is your own personal financial history. It can tell financial institutions how you conduct yoru bank accounts, credit cards, movile phones and more importantly how credit worthy you are. As credit is almost an essential part of today’s lifestyles, protecting and improving your credit score has never been more important. So what can you do to improve your credit rating?

1. Check and Understand
If you don’t know what your credit rating is then you won’t understand it. Make sure you check your report at least once a year or if your situation changes. There are lots of websites which can be of some help for you to understand.

2. Make Amendments
If you find anything unexpected in your report write to the credit agency and ask for it to be amended or investigated. Even minor errors can cost future credit opportunities. If there are special circumstances around a particular entry such as missed payments due to illness etc. then you can often add a short note called a Notice of Correction. Lenders must read any Notice of Corrections, that has been added but don’t have to take it into consideration when making credit decisions. If you have settled any County Court Judgements or your bankruptcy has ended make sure this is showing on your record.

3. Register Your Interest
If you are not on the electoral roll then you have less chance of getting credit decisions. Being able to track you to a registered address is an important factor for financial companies.

4. Pay on Time
Making payments on time is very important no matter how big or small they are. If you have any problems making payments then you must contact the company immediately. Often they can assist you with ‘temporary blips’ and discussing options and keeping them informed can reduce the the damage to your credit score.

5. Check Your Identity
If you notice anything unusaual or unexplained on your credit report such as applications you didn’t make then you may be a victim of identity fraud. Always check that you can account for all of your credit ‘footprints’.

6. Keep the Record Straight
Your credit report includes a section listing anybody you have a joint account, mortgage, loan or credit card with. Lenders may take a look at the financial histories of these people when you apply for a new loan. If they have a poor credit record, you could be rejected.
If you no longer share a joint financial agreement, advise the credit agency who can remove the financial connection from your credit report.

7. Reduce Your Footprint
Several applications within a short period of time will show up on your credit report. If you want to shop around for credit, ask the companies for a quotation before making a formal application. If the company needs to check your credit report to give you a quotation, make sure it only makes a quotation search. Lenders may interpret an abnormal number of credit application searches as indicating that you have applied for an unmanageable level of credit. They may even suspect fraud.

8. Tell the Truth
Always tell the truth on your applications. Lenders can find out quite easily if you have lied and this will cause difficulties in future applications for credit. It may even be deemed as a fraudulent application.

Improve Your Credit Score

Sky — Fri, 06 Feb 2009 15:55:58 +0000

A bad credit score can cause all sorts of problems when it comes to the time for one to apply for financial products. Here’s some tips on what you can do about bad credit scores:
First of all, make sure that you’re on the electoral roll.
It’s an important factor of the credit scoring process. Not being registered is likely to result in an application being refused. Contract your local council to make sure you are, and that your personal details are up to date.
Secondly, space out applications.
If a lot of credit searches are done in a short space of time it could have a negative impact on your credit score. Every time you apply for a loan, credit card, insurance or even a mobile phone, a credit search will be carried out—so try not to do it all at once.
Thirdly, never miss a payment.
Missing payments once or twice can affect your credit score for years. Do your best to make minimum payments, and if you are struggling, discuss your situation with your lender. An altered repayment schedule isn’t great, but it’s better than ending up with a County Court Judgement.
Last but not the least, cancel old accounts.
It doesn’t look good to have lots of credit cards to your name, even if they are paid off. If you are not using an account or card, then close it.