These days, in the current financial climate, getting credit can be very difficult for many people, and there are a number of common factors that can play a big part in whether or not you are accepted for the credit that you apply for.
We all need to rely on credit for something or another, from buying a car or house to financing a large purchase, going on holiday, paying for a dream wedding, and more. However, needing finance is one thing, and actually being able to get finance is quite another. With lenders and banks being increasingly careful and stringent when it comes to lending money it is important for those looking to take out credit to ensure that they know what sorts of things could stand in their way and what steps they can take to increase their chances of success.
If you have made regular late payments on debts and bills in the past, or if you have missed repayments on a regular basis, then your credit history and score will have suffered. Anyone that has a low credit rating, particularly in this current financial climate, will find that getting affordable finance, or in some cases any finance, is very difficult or even impossible. When lenders are considering your finance application they will look at your credit history and score, and if you have a low score this will indicate to the lenders that you are not able to properly manage your finances and may not be able to afford to make repayments on the finance, thus increasing the chances of getting turned down.
You should bear in mind that it is not just your own financial conduct that can affect your credit rating and chances of getting finance. You may have managed your finances perfectly, but may be tied to someone that has not. This can also affect your credit and chances of getting finance, as the details of anyone that you have financial ties with may appear on and affect your credit report and history. It is worth checking your credit report to see if there are any details relating to any financial associate or someone that you have or have had financial links with, as this could be affecting your credit.
Your credit and chances of getting finance can also be affected by the number of finance applications that you make, as in most cases when you make an application for finance the lender carried out a credit check, which leaves a footprint on your credit report.
Therefore, if you do contact a lender about finance make sure that you ask them for a quote and not to carry out a credit check just yet until you have firmly decided which lenders you want to apply through for the finance that you need. Also, avoid making too many applications in a short space of time, as this can look bad to lenders and can sway their decision with regards to whether to lend you money.
You should make sure that you are registered to vote at your address, as this can affect your ability to get credit. Lenders will use the electoral role to check that you are who you say you are, and if there is no information available then the chances are you will be turned down. Also, bearing in mind that your credit score will determine your success make sure that you check your credit file and rating on a fairly regular basis, as you will then be able to see what lenders will see when running a credit check, giving you a better idea of your creditworthiness and whether it is viable to apply for finance at that time.