If your credit application denied, it feels horrible. You might feel ashamed and embarrassed but, don’t worry as all is not lost and it doesn’t mean that you’ll be getting denied forever. There are always alternative places to try who will give to people with bad credit and, for life’s big purchases, you can use companies like Quick Car Credit who will provide a speedy response. You should feel safe in the fact that there are ways to improve your credit rating for next time by understanding what it is and why you have been declined.
How Does Credit Rating Work?
Banks and building societies use different ways to calculate your credit score. It is based on the banks’ and building societies’ analysis of your credit history. The report that they get on you will also take into account any store cards you’ve had, credit cards if you’ve got a mortgage, any loans or car finance.
How Do You Check Your Credit Score?
Before applying for credit, you can check your credit score yourself online on several different websites. You can do it either for a small fee or on a free trial basis.
Remove Yourself From Financial Partners
If you have taken out a joint mortgage or bank account in the past and if that person has a bad credit history, then it could impact yours too so make sure that if you are no longer with that person that you let the credit reference agencies know so that their status no longer has an impact on yours.
Make Sure You’re On The Get Electoral Roll
This will improve your chances of being accepted for credit because prospective lenders and credit reference agencies use the electoral roll to check that you are who you say you are and you live where you say you live.
Close Unused Accounts
If you have any credit cards, store cards, mobile contracts or accounts that you don’t use or need any more then close them by actually contacting the provider and closing it officially.
Don’t Miss Repayments
If you miss or make late payments, then these can go on your credit file for up to six years to make sure you’re on time. If for some reason this happens out of your control, then as long as you pay it as soon as you can then talk to your credit provider to see if you can get this black mark removed.
Pay Off Debts
If you can, pay off more than just the minimum payment as this shows good behaviour and shows any future lenders that you are managing your debt well.
Get A Credit Card To Build Your Credit History
It might sound crazy to go and get a credit card, but lenders need to be able to asses you somehow, and this is the way they do it. You need to be able to trust yourself, discipline yourself and manage it well by making a few purchases each month and pay them off as this will show that you are responsible and able to handle a credit card.