Keeping Your Credit Under Control

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Boost your credit rating and ensure you’ll have fast cash when you need it

Making ends meet can be really tough, especially if you’re unemployed, on government benefits, a student or earning a low income. It can be hard finding the cash to cover your rent or mortgage and living expenses, not to mention the little extras that life can throw your way. Sometimes you need a fast cash loan to see you through a rough patch or wrap up lots of little expenses into one easy repayment.

By following a few simple tips, it’s easy to keep your credit check in the clear and help ensure your loan or credit application will be successful.

What is a credit check?

When you apply for credit or a loan, the company you apply to will run a credit check of your financial details including

  • any overdue debts and defaults on loans
  • any previous applications you’ve made for credit
  • the number of credit enquiries you have made in the last five years
  • the types of credit you have applied for
  • the names of lenders who have provided you with credit

Your credit file doesn’t have a ‘good’ or ‘bad’ rating – it simply lists your credit information, along with a credit ‘score’ between 1 and 1200, for a lender to review when assessing your application. Each lender has their own policies that they’ll consider when reviewing your credit history – a ‘bad’ credit rating doesn’t always mean they won’t grant you that fast cash loan.

Run your own free credit check

Many of us don’t know how healthy our credit rating is. If you’re worried about yours, don’t stick your head in the sand. Get a copy of your credit report for free.

Keeping your credit check in the clear

As they say, prevention is always better than cure! Keep your credit record clean and healthy by following these 6 simple tips.

  1. Pay all of your bills on time. Delayed payments can be considered a sign of financial distress, so always pay bills on or before the due date. Even if you find yourself stuck and can’t afford the full balance, pay as much as you can or contact the bill issuer before the due date to negotiate a payment plan.
  2. Pay your bills in full. Don’t get into the trap of only making the minimum payment, especially on credit cards which charge high interest rates. This only results in a higher debt that takes longer to pay off.
  3. Live within your means – avoid overspending. Use credit and store cards wisely – it can be very easy to give in to temptation and use these to buy things you can’t afford. These cards can often have a high credit limit, but experts advise we use just 30% of our total available credit. Don’t buy more than you can afford to pay for in full when the monthly bill arrives.
  4. Limit the amount of credit you apply for and have access to. While having credit available is great for emergencies, having too much credit at your fingertips can create a temptation to overspend.
  5. Don’t get into default. If you know you are going to have trouble making a bill payment, contact the company to let them know and negotiate an alternative payment plan, and stick to it.
  6. Keep your details up to date. If you move or change email address or your phone number, be sure to update your details with everyone you receive bills from. And if you notice a direct debit has stopped but know the debt still exists, don’t wait for the company to contact you – stay on top of things and call them to sort it out and ensure your payments stay on track.

We’re here to help you clean up your credit check

Whether you’re unemployed, on government benefits, a student or earning a low income, you can start cleaning up your credit rating today.

For help applying for a debt consolidation loan, contact City Finance today!