The best ways to improve your chances of being approved for a loanIs your credit rating in the best possible shape it could be in? A bad credit score can happen to any of us. Our credit score does not remain static, and so depending on our financial circumstances, it can go up and down from year to year. The reality is that there are borrowers looking for payday loans no credit check, but they do not have to be. Building up your credit score can give you greater access to different loan products and better rates, since you are considered less risk to the lender. We explain some of the best ways to improve your credit rating below.
Credit scores explainedFirst things first, let’s take a look at what exactly a credit score is, before getting down to how you can improve it. A credit score is based on the financial information on your credit report and is given a score by the three main credit reference agencies, who lenders turn to in order to carry out a credit check on you, so they can assess whether or not to accept your application for a loan. This is why having a good credit score, and taking steps to improving it are vital, as it dictates whether you will be accepted for things such as mortgages, credit cards, short-term loans, and even insurance or mobile phone contracts.
The information on your credit file that dictates your credit rating include:
- Store cards
- Joint accounts you have
- Credit already available to you
- Your credit search footprint (the number of applications you have made for credit whether they were successful or not)
- Any early or late repayments made