Average credit rating
How good is an average credit rating?
Before the credit crunch and the recession those of us with average credit ratings would probably have passed most credit checks and been approved for credit.
However in today’s climate, lenders are tightening up their criteria and you may find you get turned down more often than not.
It’s your report
Join the campaign to fight for free annual credit reports for everyone
Checking your credit history means you can identify ways to improve your credit rating, which could help you to get a better rate. You can check your credit report online with a number of different providers and most offer a free trial period of between seven and 30 days.
Our top tips for people with an average
1. Always make your repayments on time – missed payments show on your credit report for at least three years and could have a damaging effect on your credit score .
2. Talk to your lender if you are having problems making your repayments – you may be able to reschedule your payments so you can afford them comfortably.
3. Add a note of explanation to your credit report if there are circumstances, like illness or an accident, to explain previous problems.
An average credit rating in UK financial providers’ minds is something that can be worked with. You’re still likely to find suitable products for most of your credit requirements but if you’re not careful, you could easily slip into a cycle of having bad credit.Source: www.uswitch.com