Poor credit ratings can result in one lender after the other turning you down. Sometimes these poor ratings are the result of an inability to make repayments or reckless spending in the past. There are, however, times when other factors affect your rating without you actually having done anything wrong. Here are some of these factors.
First Time Borrowing
Strangely enough, if you are borrowing money for the first time, you may be turned down because there is no record showing your ability to repay a loan. As a rule, starting off by asking for just a small amount and then making sure you make your repayments on time is the best way to overcome this issue.
Inexplicably being turned down for credit or online loans could be the result of your personal details being confused with those of someone else. (Source: The Telegraph)Check your personal information on your credit score and, if it is wrong, have it corrected before making new loan applications.
Too many Applications
Making multiple applications to borrow at or around the same time could give lenders the idea that you suddenly need to get hold of a lot of cash. This can make them reluctant to give you credit. While taking out a contract for a mobile phone; extending your overdraft and applying for a store card may not mean anything individually, doing all three of them within a short space of time may send lenders all the wrong signals. Waiting for a few months, especially if you have recently been refused credit, before making another application can make all the difference.
Online loans, and in particular payday loans, are an easily accessible method of getting the funds you need quickly. If you keep being turned down for loans for ‘no apparent reason’, check your credit report for issues like those described above and take the necessary steps to have them amended.
To maintain a healthy credit rating, make sure you:
- Only borrow money when you have to
- Never borrow more than you can afford to repay
- Always meet your repayment schedule on time
Responsible lenders like Uncle Buck ensure you have the ability to repay your short term loan before ‘handing’ you the money by:
- Checking your financial situation
- Never lending you more than they believe you can repay
They will also show you exactly what you will have to repay by what date and what to expect in case of late payments before you have to commit yourself to a loan.
Give Uncle Buck a call on 01959 543 400* to learn more.
* Depending on your telephone provider, call charges may apply. Calls may be monitored and recorded for training and security purposes.