Clearly it’s best to avoid things that can have a negative impact on your credit rating
Avoid these bad habits that impact credit score
Clearly it’s best to avoid things that can have a negative impact on your credit rating, whether it be in the short or long run. Continuously making the same mistakes when it comes to your credit score can limit your capacity to obtain finance, as well as give off the wrong impression to potential lenders.
Some of the things that can either be done or avoided to stop your credit score from dropping even further are:
- High levels of debt – Lenders may see this as a sign that you are poor at money management, and won’t be inclined to lend you any.
- Payment defaults, especially mortgage payments. These kind of missed payments can stay on your credit file for up to 6 years.
- County Court Judgements or CCJ’s – These can also stay on your credit report for 6 years.
- Applying for multiple lines of credit at once – These show up on your credit report and are a clear signal to other potential lenders that you are considered a risk.
- Having open credit accounts/cards that are never used
- Not being tied to a fixed location or moving around a lot within a short span of time.
Representative 22.93% APRC variable.
For a typical loan of £26,600 over 180 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £484.00. This includes a Product Fee of £2,660.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £87,030.00. Annual Interest Rates range between 11.7% to 46.5% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
