Posts Tagged ‘credit history’


Consumers urged to check credit before making loan application

Thursday, June 3rd, 2010

In the ongoing difficult financial climate many people have struggled to get finance, and no matter sort of finance consumers are applying for – be it loans, mortgages, or credit cards – there is a far higher chance of getting rejected for the finance these days than several years ago before the onset of the global financial crisis.

Lenders these days are being far more stringent with regards to who they will lend to, and the credit score of an applicant has become more important that every, as lenders are using credit reports to go through applicants’ past financial history with a fine tooth comb before making a decision on whether to give them the finance that the need.

With credit reports now playing such a big part with regards to the decision that lender making when deciding on loan and mortgage applications those that are considering applying for a loan are being advised to check their own credit before they make any application, as otherwise they could quickly be rejected and this could further damage their credit rating.

These days it is possible for consumers to order a copy of their credit report and score with ease and convenience online, and for just a few pounds. The information from the credit report can prove invaluable in helping consumers to determine whether to make an application for finance or wait until their credit has improved.

One former bank official said: “It has become really important to check your credit report before applying for finance these days, and by doing this borrowers can save themselves the hassle of making an application that is going to end up in the rejection pile. More importantly, however, they can avoid another black footprint on their credit file.”


Borrowers should prepare themselves before applying for loans

Wednesday, May 26th, 2010

Borrowers in the UK are being urged to prepare themselves before they make an application for a personal loan, with the current financial climate making it increasingly important for consumers to carry out checks before they make an application for a loan.

According to the report anyone that is considering applying for a personal loan should make sure that before they submit an application of even start comparing loans they order a copy of their credit report and do a proper check on their credit. This can help to boost the chances of getting an affordable loan by ensuring that the data on the report is correct, and can reduce the risk of consumers damaging their credit rating by applying for loans when their credit is not up to scratch.

Officials have said that lenders are far more stringent these days when it comes to credit checks, and even small blemishes can affect consumers’ changes of getting affordable personal loans and other forms of finance. This is why consumers should check their reports to see if there are any problems and check whether they can be rectified before they spend time looking at different loans and completing applications.

Consumers are able to order their credit reports online, which means minimal hassle. Checking their credit reports can help many people to enjoy increased peace of mind when making a loan application.

Credit reference agency Equifax said: “The credit crunch and lenders’ subsequent aversion to bad debt mean that our financial histories are being placed increasingly under the microscope. Credit ratings can be affected by anything from the basics – such as your history of repaying debt – to the finer details such as whether you own a fixed-line telephone.”


Many borrowers turning to high interest sub-prime credit cards

Sunday, April 4th, 2010

There are concerns that many borrowers in the UK are now turning to sub-prime credit cards that charge astonishing rates of interest because they are unable to get finance through more traditional routes. According to a recent report around one million people that have been desperate to get finance but have been turned away by traditional lenders have turned to these credit cards, some of which are charging rates of interest that are as high as 60 percent.

One firm that offers credit cards for those with damaged credit ratings is Provident Financial, which offers the Vanquis credit card. The company claims that it has been receiving a massive 2700 applications a day for its credit card, which charges some consumers an astonishing rate of interest based on their credit rating and risk. With so many people getting turned down for credit, and others having their credit limits slashed or their accounts closed, firms like Provident are enjoying a roaring trade.

Provident now has over four hundred thousand borrowers on its books, although officials from the company said that it had also had to turn down well over three quarter of a million applications from desperate applicants. The figures from Provident have raised concerns that more and more people could be forced into finding finance from companies such as door step lenders where the rates of interest charges are extortionate.

An official from the debt charity, Credit Action, said: ‘These people are not being served by the high street banks and it just goes to show the appetite that there still is out there for credit. The rates on these cards are very high if you cannot manage your debts. The fear is that while some of these people will hopefully have been put off, many will have to turn to doorstep lenders or pay day loans companies which can charge exceptionally high amounts.’


Loan and credit card customers being penalised unfairly

Friday, November 20th, 2009

It has been reported that many customers in the UK that are looking for loans and credit cards may be getting unfairly penalized as a result of the searches that are carried out when they make an application for a credit card or a loan. (more…)


Consumers with low credit are suffering through the recession

Wednesday, June 10th, 2009

Whilst it is clear that the ongoing recession is affecting most people in one way or another, particularly in terms of their financial situations and job security, a recent report has said that people that have damaged credit histories and low credit ratings are amongst the groups that will be hardest hit by the recession. (more…)


Loans For Bad Credit Applicants

Sunday, March 2nd, 2008

With the high level of consumer debt in the UK, and the rising costs experienced by most households, it is little wonder that an increasing number of us are finding that our credit history and rating has been affected. Having bad credit is nothing unusual these days, but it is, of course, important to try and avoid bad credit, as it can have a profound impact on your financial future. If you have bad credit you could find it increasingly difficult to get finance in the future. However, that said, there are now a number of lenders that are able to specialise in offering finance to those with bad credit. (more…)


Negative Credit and Job Searching

Sunday, March 4th, 2007

It is common knowledge that bad credit can make it harder to get more credit. But did you know it can also effect your ability to find or keep a job? (more…)


How to Dispute Credit Report Errors

Sunday, March 4th, 2007

Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. This information is then sold by consumer reporting companies to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. (more…)


Ready, Set, Credit

Sunday, March 4th, 2007

Obtaining a credit card can be a great financial tool. It is more convenient to use and carry than cash, and offers valuable consumer protections under federal law. (more…)


Shopping For Credit

Sunday, March 4th, 2007

Especially if you are new to the credit game, and have not yet established your own personal credit, you may be unsure of what kind of deals you can get with your own credit, in terms of interest rates and stipulations. (more…)