Bad Credit Rating

If you are applying for unsecured or secured loans remember that all finance companies employ different lending policies when deciding whether or not to accept loan applications. It is entirely possible that one lender will accept your loan application whilst another refuses. For those who have been recently refused credit, consider requesting a copy of your credit report to find out whether there is anything you are unaware of.

In the UK there are three main credit referencing agencies used by most lenders - these are Callcredit plc, Equifax plc and Experian. All three organisations will supply you with a report from which you can find out your credit rating for a fee.

A typical credit report may consist of the following;

Aliases – If you have previously applied for credit using other names, such as maiden names, in the past, then this may show up on the record.

Associations – Reveals details of anyone you are associated with on a financial basis, such as man and wife.

Electoral Roll – This shows the dates your name and addresses were recorded on the electoral roll.

Public information over a six year period - This includes adverse credit information such as CCJ's.

Financial Information – Includes details of your current credit agreements with lenders such as personal loans and credit cards. There may be a summary of payment history and defaulted payments.

Mortgage Information – The members of the Council of Mortgage Lenders provide information on those who have either given up their homes or had their homes repossessed.

Previous Searches – Includes the details of credit applications made within the last 12 months and possible checks by your existing lenders.

There is a host of other information which may appear on any credit report such as searches made against your file because a relative with a financial association has applied for credit, or previous addresses where you owed money to lenders without giving the lender a forwarding address.

It is worth noting that all of the information mentioned above will be used to calculate a credit rating score which may influence a lender to decide whether or not to accept a loan application.