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Credit
ratings are one of those things that hide away in the background. Always there,
always changing and always important yet very few people know much about them
and how much damage a bad credit rating can actually do.
In
the article below we highlight just how our personal credit scores impact our
life and one of the major warning signs that may need to your credit rating
needing the kiss of life to help bring it back around.
Who Uses Credit Ratings Anyway?
Credit card companies, mobile phone companies, banks and
building societies are just a few of the common examples of organisations that
will check your credit report before making a decision on which of their
services (if any) they are prepared to offer you.
Insurance companies, landlords and even employers have also
known to check credit records to see how financially responsible applicants are
before making a decision on whether to offer an insurance policy, renting out a
property apartment or offering you a job.
Because of the importance that so many companies place on credit ratings of prospective customers, it is vitally important that we understand what can place a negative impact of the current level of our credit rating so that we can avoid it..
Because of the importance that so many companies place on credit ratings of prospective customers, it is vitally important that we understand what can place a negative impact of the current level of our credit rating so that we can avoid it..
Below we highlight one of the most important things that you
can do which can negatively impact your credit.
Warning Sign – Missing Scheduled Payments
One
of the most important aspects of a credit report relates to the details
regarding personal payment histories.
·
Do
you pay your bills on time and in full each month? – Failure to do so will
negatively impact your credit score.
·
If
you are late with your repayments, how late are they? – Essentially, the later
you make your repayments, the worse it will be for your credit score.
·
Have
any of your missed payments resulted in CCJs or bankruptcies? - These are some of the worst things to have on
your credit report from a lender's perspective and will act as a big red flag
for any applications.
If you tick any or all of the boxes above, the time to
change your payment habits is now. For further advice on repairing credit
ratings, please check out the link below:
Helpful Links
See the following helpful links to other useful resources:
- Helpful Money Tips Storify Page
- Find Money Solution Blog
- Some excellent links to ohter personal finance resources
See some really interesting tips on how you can improve your credit score from Experian UK:
