Poor credit score? Here’s what you need to know

In the United Kingdom, credit scores are the main contributing factor to whether or not banks will lend you money. Your credit score is a number that represents your likeliness to pay the money back. The higher your credit score, the more trusted you are as a borrower. The majority of credit scores go from 0-999. 0 being the least likely to pay the money back, and 999 being the most likely. Those with a higher credit score are the preferred borrowers. However, even if you have a poor credit score, there are still options that could allow you to borrow.

In order to calculate your credit score, banks or lenders analyse your previous credit history then determine the score based on this. They take into account things like loans, overdrafts or applications for credit. Find out your credit score here. Unfortunately, if your credit score is poor, it can negatively impact many aspects of your financial life. Monthly car insurance, mobile phone contracts and mortgages are all things affected by credit scores. This is why it’s so essential that you work to improve your credit score and keep on top of your finances.

Credit scores, do fluctuate though. If your credit score is poor now, you can take steps to improve it. There are a few ways you can improve your credit score. These are as follows:

  1. Close any credit cards that are no longer in use. A large credit limit will be viewed negatively by some lenders.
  2. Pay your bills on time. This one seems relatively straightforward but the more prompt you are at paying more bills, the more trustworthy you will appear to lenders. Overdue or lack of payments suggest poor financial planning.
  3. Register on the electoral roll. If you’re not registered to vote, you’ll find it much harder to get credit.

Each individual lender will have different criteria you will have to meet in order to establish whether or not you’re suitable to lend to. If you’re struggling to get credit because of a poor credit score be sure to assess all your options. You may be denied credit by some lenders, but accepted by others. Different deals are available depending on you and your credit history.

Here at Talk Loans, we are a loan broker offering a smarter way to get a loan. We work with a variety of lenders from across the market to get you the best offers available. This extends from our Bad Credit loans – which are specifically designed for those with poor credit scores, all the way to Guarantor Loans which allow a guarantor or homeowner to co-sign the credit agreement.

Loans can be vital. Regardless of your credit, if you’re in need, you should be able to borrow. As long as the loan is affordable, you can use it for any reason you deem necessary. Some lenders will restrict the loan purpose, but there are plenty of lenders out there who don’t. With Talk Loans’ extensive panel of lenders, there’ll be a lender to suit you. If your credit rating is really getting you down, why not talk to your bank. They may be able to help. If not, why not contact one of the customer service team at Talk Loans and see how we can help. We will listen to your needs and talk you through your options and how we can help.

If your credit rating is poor because of missed payments, then try and take the necessary steps to improve payment punctuality, then try applying for credit when your credit score has climbed. However, if your credit score is low owing to something more severe, such as filing for bankruptcy then you may have more of a struggle.

Ultimately, each lender scores you for credit scores differently. Just because one lender has rejected you, doesn’t mean others will. Poor credit scores can rise! Make conscientious steps to improve your financial situation and your credit score will improve. If you get rejected for credit, ensure you know the reasons why. Check your credit file and understand the errors before applying again. Credit scores make lots of sense if you think of them from a lender’s perspective – would you lend to somebody with a history of lack of repayments?

To learn more about the loans we offer that are available to you and your credit history, visit Talk Loans.