Many people believe that they have worse credit than their records show because of events in the past. Your credit rating changes and can improve with time. If you have any questions relating to your credit rating, please contact us.
Credit Rating – Fact v Fiction
Many people believe that they have worse credit than their records show because of past events. Your credit rating changes and can improve with time.
1. If I’m turned down for credit it will impact my credit score.
FICTION– credit agencies record the fact that you have applied but not the outcome. However, many applications in a short period will make you look desperate.
2. Checking my credit score will have a negative effect on my rating.
FICTION – if you do it yourself you can make plans to improve it.
3. Paying off loans early will improve my score.
4. Living with someone who has bad credit will affect me.
FICTION – credit ratings are more accurate these days. Sharing an address will not influence your score, but sharing a bank account/utilities may alter it.
5. Having credit cards with zero balance will not impact my rating.
FICTION – your credit file will list all available credit, so close down any unwanted accounts.
6. I’m ok to borrow up to my credit/overdraft limit.
FICTION – regularly going up to your limit will make you look desperate and affect your score.
7. Never missing payments or making late payments will better my rating.
8. I’ve never borrowed, so my credit rating should be good.
FICTION – you have no track record, and so are viewed lower than those who have borrowed and repaid.
Do you need a mortgage and are worried about your credit rating? If so, please contact us for further details.