Your new car finance application has just been declined, you cannot get a new smartphone on contract and you do not understand why the property agent have just rejected you as their new tenant despite the fact that you never missed paying your rent on time. You have enough cash, to pay for all of this and it doesn’t make sense to you at all.
Or does it?
Above scenario is surprisingly common amongst people who either never heard about the Credit Score or didn’t pay enough attention to the topic of building their financial credibility. The reality is though it applies to everyone living in the UK. It has an influence on your life too! Just continue reading to learn how…
Before you apply for and kind of credit, buy goods on credit or contract with service providers you must know this:
There is nothing more irresponsible than going from lender to lender or retailer to retailer and applying for credit without knowing your Credit Score first. Why?
Such behaviour may lead you to financial troubles as you may lose your ability to obtain any credit for a long time! No financial organisation / retailer will have trust in your financial credentials. So, let’s see How it works?
Before lending you any money or setting the contract with you most lenders / retailers (businesses, including banks, building societies, finance houses, mobile phone companies and major retailers) will first want to assess your financial credibility. Your credit / purchase application will allow them to check your Credit Score and Credit Report via commonly accessible Credit Reference Agency – an independent organisation that holds information about consumers or businesses.
The lender / retailer will make their decision based on what they see in your Credit Report so it is crucial to know what it looks like before you apply as each denied credit application has a damaging effect to your credit score. Moreover each check leaves trace in your credit report which lowers your Credit Score! Any kind of desperate behaviour will very likely damage your financial credibility that will then need long time rebuilding.
The higher your score,
the greater chance
of getting the best credit deals
So how to check your Credit Score?
It is simple. You register your FREE account with one of the credit reference agency such as Experian via http://www.experian.co.uk.
What are the benefits of a Free Experian Account?
- Experian is the UK’s most trusted credit score provider*
- You can access your Experian Credit Score without paying a penny – Free Forever
- You can see your chances of being approved for credit cards and personal loans before you put in an application
- Your score can help you to understand your credit situation before applying for credit