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Tips & Myths about Your Credit Rating

By Jackie De Burca

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Published: 29Nov2009
Word count: 571
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Borrowing money means needing to understand about credit rating, unless you opt for a no credit check payday loan. For most loans your credit rating will be checked and it is best for you to check it first yourself just in case. Even though you may feel that you're sitting pretty with a good credit rating there are some things that could surprise you.

There are three credit reference agencies in the UK- Experian, Equifax and Call Credit. These agencies hold a huge amount of information about you and any small indiscretion can lead to a potential lender not granting you a loan. The difference with my payday loan which judges you on being in full time employment with your wages being paid into your bank account, is that these no credit check payday loans are evaluated on this different set of criteria.

To improve you credit rating for loans in general one of the things you can do is register to vote if you have not already done so. Believe or not, your mobile phone bills affect your credit rating. If you pay one of these late this will damage your credit rating. You must pay all your bills on time to keep a good, clean credit rating. Therefore there are times where an instant payday loan could resolve a bigger problem further down the line.

The size of your credit also affects the rating, so if you have large amounts of credit already, which includes your credit cards and your overdraft, then you are less likely to be given more credit. However getting married or divorced does not affect it. This is not the important aspect as the records hold information on the financial associations. So for example if you got divorced but you do not change your financial association with your ex-spouse then that person can affect the rating.

What about a credit blacklist-are you concerned that your name is on this? Actually there is no such thing in so far as the way many consumers believe. Lots of people believe that there are names on a list who will never be given credit again however this is not the case.

Other people believe that checking their credit rating can be harmful. However it is not and in actual fact it is a lot less harmful if you need a loan to do this and rectify any outstanding issue before applying for a loan. It is important to know also that if a credit account is in default this will stay on your record for six years.

Another credit myth is that people who have lived in your home before you can affect it badly. This is not true. The only people who can do this is anyone you have a financial connection with by having a joint account or mortgage. When you change circumstances and remove your name from a joint account, you also need to tell the agency that you wish to disassociate yourself from this person.

A good reason to check your record before you apply for a loan is that all applications you make for credit stay on your report for 12 months, so other financial institutions will see if you have been turned down elsewhere.

Follow these tips and you can improve your credit history, and remember that it is far better to avail of a payday loan then to pay a bill late.

Jackie de Burca writes articles about no credit check payday loans and examines how credit checks work. Payday loan companies do not have the same system as banks and therefore payday loans no credit check can be suitable under various circumstances. http://www.uncle-buck.co.uk/Payday-Loans-Instant-Cash-No-Credit-Check.htm

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