As a parent another important lesson you can pass on to your family is managing credit. Enable’s experienced IFA’s know that being able to access and manage credit is vital to financial success. Understanding how it works can help you help them.
Most lenders go through two main credit reference agencies for information on your financial past – Equifax) and Experian , they compile credit histories from a number of sources, including the electoral roll, county court judgments and how effectively past debts have been paid. Every time a new form of credit is opened it will leave an electronic footprint on your record. The decision to turn borrowers down for credit isn't made be Experian or Equifax but by the lenders, based on their own criteria.
So if you want to be credit worthy these are some of the best things to make sure you have done;
• Get on the electoral roll.
• Don't make too many applications for credit in a rush – and that includes things like mobile phone contracts. Space out applications.
• Show lenders you're a responsible borrower by borrowing and paying it back. It might mean taking a credit card with a very high interest rate, spend small amounts and then keep clearing the balance.
• Do everything in your power to keep up all agreed repayments ask for smaller repayments if you're finding it impossible.
• Joint finance done with someone with a bad rating will affect your rating. If you split, write and tell the debt agencies.
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