Why Having A Good Credit Rating Is Important To Your Family

Many of us will need to borrow money at some point in our lives, whether to tide us over until payday or to buy a home. However, it is important to borrow sensibly and not let debts get out of control. If you over-stretch yourself and do not repay your debts on time, you will damage your credit rating. 

Credit rating is one way that banks, credit card companies and other lenders make decisions on whether or not to lend you money. A good credit score can help you get better rates when you apply for a loan or mortgage.

Here are some of the things that may affect your credit rating:
  • Not being on the electoral register
  • Mistakes on your credit report
  • Moving home a lot 
  • High levels of existing debt
  • Missing or making late payments
  • If you receive a county court judgement for an unpaid bill
  • Mistakes on your credit report
  • Applying for lots of credit at once
  • Having credit cards accounts open that you never use
Bad credit rating or even no credit rating at all could stop you being able to take out a mortgage to help you purchase your first family home or even stop you from taking out things like phone contracts, credit cards and bank loans. To check your credit rating, get hold of your credit file from any of the three main credit reference agencies Experian, Equifax or Callcredit. A credit report should only cost a few pounds but is well worth it. Post in association with: tsb.co.uk


Sources: https://www.moneyadviceservice.org.uk/en/articles/how-to-improve-your-credit-rating

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