Things that might be affecting your credit rating

1. Late payments

Late payments will be flagged up to potential lenders. Whilst a single late payment should not have significant impact a build up of consistent late payments could result in future credit applications being declined.

2. Payment arrears

If you have a growing number of outstanding payments this could significantly affect your credit rating. It is important to stay up to date with payments as much as you can.

3. Arrangement to Pay markers

Although setting up a payment arrangement with your lender can be a good way to get your finances back in order it will also show up on your credit file and can have quite a negative impact on your overall credit rating.

4. Defaults

A default is among the most serious negative markers to have on your credit file (the most serious being a ‘Repossession’ marker), and it indicates that payments were not made as outlined in the credit agreement to such an extent that the lender took the decision to end it and request repayment of the debt in full. This will remain on your credit file for a period of six years (as will any late payment markers) and could dramatically affect your ability to get credit elsewhere.

5. No Electoral Roll Listing

Depending on the other information within your credit file, not being listed on the electoral roll could be the determining negative factor for some lenders.

6. CCJs

A County Court Judgment is issued by a court in response to a request by a lender or other organisation. It is the final stage of debt collection. The effect on your credit file is significant and the information will stay on your file for a period of 6 years.

7. Insolvencies

There are insolvency options available for those who can see no way out of debt but they are options not to be taken lightly.

The negative effects of an insolvency on a credit file is about as bad as it gets.

8. Financial associations to other people

Financial associations happen as a results of opening a joint credit account with someone. This then means that the way the other person manages their credit could also impact your credit file.

If a financial association is no longer applicable it is possible to get it removed from your file.

9. Alias names

If you have ever been known by another name or have changed names recently it’s worth making sure that all of your names are correct across all important documents.

10. Credit searches

Despite common misconception credit searches by lenders do not affect your credit rating.

The only searches that will show up are those done by debt collection agencies which will stay on your report for two years.

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