If you’re finding that every time you apply for credit you’re getting turned down, it could well be the case that your credit rating is the problem. Although a poor credit rating can be down to reckless spending or an inability to keep up with repayments, there are also a number of other factors that can result in a poor rating, even when you’re not at fault. Remember to check your credit record for the following issues, which can be swiftly amended to hopefully provide a better outcome when you look for online loans or other sources of finance.
Too much too soon
Several applications to borrow that have resulted in credit searches can send out all the wrong signals to lenders. Taking out a mobile phone contract, applying for a store card and even increasing your overdraft within a short space of time might suggest that you suddenly need access to a large amount of cash, which can make some lenders reluctant to extend credit. Particularly if you’ve been refused credit recently, waiting a few months before applying again can make a real positive difference.
Because many people share similar personal information, it’s highly possible that your details could be confused with another individual. If you’re being inexplicably turned down for online loans or credit, check that the details on your credit score are the right ones; if there are inaccuracies, ensure that they’re corrected before making further borrowing applications.
First time borrower
Astonishingly one of the main reasons for being refused credit is not having had any before! Because there won’t be any record of your ability to repay, companies may not feel inclined to grant you a loan. Asking for a small amount and ensuring you meet the required repayment schedule is usually the best way forward.
Online loans are an accessible way of getting the cash you need rapidly. Ensure that you check your credit record regularly to ensure that your credit score is as favourable as possible. Remember that regular repayments on your commitments are essential for a good credit rating to be retained.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk