Why Your Credit Score is Important
When you visit a creditor, have you ever wondered how exactly they determine whether to lend you money or not, or how much they will lend you? As well, what decides the rate of interest you will receive? Many people think that every person is offered the same rate of interest on a loan for things such as a car or house mortgage, the truth is some people get better rates than others which can make thousands of dollars difference. Most creditors or lenders, use a credit scoring system to figure out your risk of repaying it. If your score is ranked well, they will be more inclined to offer you money knowing that the risk to them is lower. If your score is low, they will most likely offer you something but at a higher rate of interest due to your perceived risk.
It is unfortunate by true, many people can have but one or more little scars on their credit reports and it effects much of their ability to attain credit. This can be both depressing and upsetting as many take it to be a reflection of them personally. But the truth is that most people who have a bad point or two on their credit report are necessarily irresponsible people. Unexpected issues such as losing your job, or suddenly needing to pay for a new roof or other financial hardships can unfortunately cause one to miss payments or cause other negative factors for their credit history. Most people try to meet their financial obligations and not everyone is an out of control haphazard spender. So if a financial hardship hits you, you are given no option but to pick and choose which bills you will pay on time and which ones you will let slide, you may not have a choice. Like most people you will choose to eat and pay for electricity before you pay your credit card bill. As a side note, for those of you who seemingly find it impossible to avoid the use of your credit cards, this would account for most of us, it would be in your best interest to find the best credit cards available. There are some that offer bonuses and less interest than others. It may be time to compare your rates and incentives to others.
What is surprising about your credit report is that for most, the creditors and bureaus have been adding and subtracting information about you without you really even knowing anything about it. They assess your score based on the information they have and you may have never even seen it or even have been aware of it. Often what happens with the swapping of information back and forth is that there could be issues that are not all the accurate or that some of the points should be legally removed and not influence your score negatively. This is where knowing your legal rights pertaining to debt, debt consolidation and credit can really be helpful and a qualified representative in credit repair can help to point you in the right direction. Since credit and debt and similarly linked, there are even some debt consolidation companies that can be of great assistance in these areas. Equally, be sure to look for other ways where you may be able to save a few dollars, Tax Refunds & Tax Returns for example. Using a qualified tax refund company may just be able to get you more money back than you realized.
Years ago, there seemed to be a bit of a wave in credit report repair companies and they didn't seem to be all that well regulated as some of them turned out to be scams and negatively influenced the good credit fixing companies. My best recommendation is to check on their Better Business Bureau (BBB) record, see how long they have been in business and be aware of promises that sound too good to be true. If a credit repair firm tells you they can within days turn your score from horrible to amazing then I would really have my doubts. Usually if it sounds too good to be true, well… it often is. Another positive found by some companies is a money back guarantee, however this should only be backed up with an excellent BBB record since you want to actually ensure that your money would be returned in the event you are dissatisfied. Also never be pressured into a "now or never" type approach, if they are offering you the world but only now and not tomorrow, chances are they are pulling a scam at least on some level. A good credit repair organization will not be able to flip a switch to improve your score but can with time (over the months) usually be able to significantly improve your score enough to truly make a positive difference. While they can be helpful we are not simply referring about bad credit loans.
For people having financial difficulties living in the UK, you can get professional help with your debts. Consider an IVA debt solution to manage your debts. An IVA stands for an Individual Voluntary Agreement. They provide a way for an individual to pay back what they owe to their creditors without having to go bankrupt. There are many benefits that IVAs provide their users. Professional IVA advice can offer you flexible ways to pay back your debt based on your unique situation. This way you can see where you will get the best rates and other incentives.
Information to help you raise your credit score