loan search for homeowners

Most of us at some time in our life have borrowed money. Some times we may not have actually borrowed the money but through other reasons have got into debt. So what can you do about poor credit ratings.

1. First get an idea of where your credit ratings come from. Was it one problem you had many years ago or several problems.
2. Whether you want to mortgage or remortgage lenders are becoming more tolerant to poor credit ratings. So being rejected several years ago does not mean that you will by necessity be rejected again now.
3. Do not take a poor credit rating for granted. It is possible that the poor credit rating is a mix up. That can occur more often than you may like to think. Maybe the poor rating is attached to where you live and refers to a past tenant. Maybe the records are incorrect. You can ask to get a credit report if you are refused credit. It costs only a few pounds (£2). You may be pleasantly surprised to find that part of the poor rating has nothing to do with you. If you want a fuller report then one of the three main credit rating agencies will usually provide you with a report at a cost (circa £15 to £30).
4. Credit ratings change over a period of time. Lenders and credit ratings add more weight to recent events than old events. So if you had problems in the past but have been good ever since then your rating may well have improved.
5. If you are stuck with a poor credit rating then make a conscious to improve that rating over time. Keep up with your payments. Make certain each payment is on time. Over a period of maybe two years your credit rating will improve.
6. If you fall behind on your payments because of illness or unemployment then let your lenders know. You may be able to come to an agreement with them so that you get a repayment holiday.  There are also the consumer credit counselling service www.cccs.co.uk .
7. Make certain you borrow sensibly in the future. What your spending and compare it to your income.
8. If you have a bad credit rating in the past but that has now improved then maybe now is the time to start to review your currently borrowing arrangements. Lenders usually increase the interest rate they charge for those with a poor credit history. You may find that the terms you got then are very poor compared to what you may be able to get now. Maybe now is the time to consider that remortgage.
9. When ever you take out a mortgage or remortgage please always remember that your home may be at risk if you do not keep up you mortgage repayments. So never over stretch yourself.

The author is Keith Clark who acts as a compliance consultant for Free to Work Consultancy. Keith is a Member and diploma holder of the Charted Institute of Marketing. 

This article was written on the 15th March 2007.

This article does not represent ‘financial advice’ as each persons individual requirements will be unique to their needs. If there is something in the article which you which to rely on then please check those details with any person from whom you purchase a term life policy at the time of purchase.

The views in this article represent those of the author and not those of Netbasic Limited.