A credit score, also known as a credit rating, is held on your credit file and is used by lenders to determine how trustworthy you could be with any money they may lend you. Creditors can use different things to help them decide whether or not you are a high risk, and a credit score is one of the main indicators of your financial reliability. When you decide to take out credit the process is recorded by the three main credit reference agencies: Experian, Equifax and CallCredit. These agencies keep track of personal information, as well as other details including when you miss a repayment, make a lower repayment than agreed or even if you default on a credit agreement altogether. Debt is one of the biggest factors in determining credit score, and understanding how your debt will impact your personal rating can prove very useful. At Council Tax Advisors we want to shed some light on credit scores and help you understand the effects of debt. If you’re struggling with money problems you can get free and impartial advice from Council Tax Advisors today, by calling 01452 687 340.
A credit score is used by lenders to determine how trustworthy you could be with any money they may lend you
To realise the impact that debt has on credit scores, it’s worth knowing the process that lenders go through when you apply for credit. If you’re looking for any type of credit, such as a loan, a credit card, a mortgage or even something smaller like a mobile phone contract, then a potential lender will want to do a credit check to see if you’re a risk. It’s understandable that the party offering you the credit will want to take care when assessing whether they’re making the right decision, and your credit report is one of the easiest ways to do so. Individual lenders will have different qualifying criteria when they assess someone’s suitability for credit, and they can match these guidelines with the information provided by credit reference agencies. If the lender is happy with what they see on your credit file and you match the majority of their criteria, then there’s a good chance that the application will be approved. However there are some factors that will drag your credit score down, making you look like a risk to lenders and increasing your chances of rejection. Council Tax Advisors is here to tell you why credit applications can be rejected and what you can do to change things. Credit scores and debt don’t have to be so confusing when you seek our help.
“Council Tax Advisors have been most helpful. Steven Rule thank you for all your help ! Most efficient. Action has been taken straight away , and help was at my hand within a couple of hours of my e mail to Council Tax Advisors asking for help. Thank you so much for everything. ”
Sometimes your application for credit can be refused, leaving you in the dark about what to do next. If you have been refused credit then the lender has decided that you don’t meet enough of the qualifying criteria to be considered low risk. There are several possible reasons for this, and it helps to know what type of things don’t go down too well with lenders. For one, you may have missed payments for previous (and maybe even current) agreements, which puts you in a bad light. Other reasons your credit score may be lower than required is if you’ve defaulted on a credit agreement, or if you’re making reduced payments to other creditors that are below the original agreement. Unfortunately debt solutions of any kind can also work to bring your score down and make you look like a bigger risk to lenders, including an Individual Voluntary Arrangement (IVA) and bankruptcy. You also get marked down if you’ve made lower payments than previously agreed into a Debt Management Plan.
It’s important not to panic if you’ve been refused credit, and guidance from Council Tax Advisors can help you sort out the issue of credit scores and debt.
There’s a chance your credit score is low because of incorrect information being displayed on your credit report. These inaccuracies can be a detriment to your score, so it’s worth checking to make sure everything is accurate and in order. If you do find that the wrong details have been recorded on your file then you can flag it up with the credit reference agency, and they should be able to change things, making sure your file is updated with the right information. If all the details are correct and you still have a low score then it isn’t the end of the world, as having low credit doesn’t have to be such a bad thing. If you can budget your money responsibly from month to month without taking out any more credit, your score will eventually start rising again. If you’re struggling to keep control of your financial situation then Council Tax Advisors has experts on hand who will be able to help you put things right. We only employ qualified, friendly and helpful advisors who understand the situation you’re in, and they know the correct solutions to take next. Don’t be left in the dark with credit scores and debt any longer, by calling Council Tax Advisors on 01452 687 340.
It’s important to know how much of an impact debt solutions have on your credit rating. You may be thinking about going through with a debt solution to help you sort out your finances, and if this is the case then it makes sense to understand the consequences. Credit reference agencies register several different things on your credit file, such as a missed repayment or lower repayments than agreed. These actions will definitely affect your credit score and bring it down, so it’s important to make sure you aren’t doing these if you’re going to be applying for credit with a lender in the near future. If you’re in a Debt Management Plan then there’s a chance it will show up on your credit file. There are some creditors who will request that a note be put on your file to state that you have a Debt Management Plan, which could reduce your chances of getting credit. Alternatively, if you’ve kept up with repayments then your Debt Management Plan could also help to make your credit file look more attractive to lenders. This is because it shows you’re doing something about the debt, instead of having a stream of missed repayments and little else. Be aware that any notes about debt management plans may stay on your credit file for some time after they’ve ended, which could make it difficult to get credit in the future.
As with all debts, the absolute worst thing you can do is ignore the problem
Elsewhere there are ways to consolidate your debts without damaging your credit rating. Debt consolidation is a way to bring all of your different unsecured debt repayments together into a single, monthly payment. Your credit rating won’t be affected if you take out a debt consolidation loan, providing you keep up with the repayments. Similarly you can also consolidate your debts on a credit card without damaging your credit rating, and it involves moving unsecured debts onto a credit card charging 0 per cent interest on balance transfers for a certain period. These options may interest you if you’re seeking a debt solution that won’t bring down your credit score.
“I would like to thank Council Tax Advisors.. For all the help and support I was given in helping me sort out my council tax ”
We’re here to solve your issues when it comes to debt, and we do this by providing leading experts who are well versed in money issues and the solutions needed to combat them. As soon as you get in contact with us for free on 01452 687 340 we’ll listen to your problems and start giving you guidance about how to deal with them. We want nothing more than to help you find successful resolutions and we’ll strive to give you all the information you need. Credit scores and debt can be difficult to understand and that’s why we’re here to help.
As soon as you get in contact with us for free on 01452 687 340 we’ll listen to your problems and start giving you guidance about how to deal with them.
If you have any questions about credit scores, whether it’s how to find out your score or how to improve it, get in touch with Council Tax Advisors right now. We’ll be able to tell you how to find your credit rating, what you can do if it’s low and much more. We’re a Not-For-Profit, Community Interest Company, which means that we’re funded by ordinary people who donate to our cause, as well as private businesses, charities and other organisations. You can rest assured that you won’t have to pay a penny for any advice you receive. At Council Tax Advisors we don’t believe that you should be charged for seeking debt advice, and that’s why we should be your first and only choice when you need help.