5 Signs That You Need To Improve Your Credit Score

| February 11, 2016 | 0 Comments

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How is your credit score doing right now? Most people don’t have a clue – and it’s only when they are refused a loan or store card that they think to check their current ratings. If you want to get better with your money, you have to keep tabs on your credit score with one of the three top agencies. Try Equifax, Experian, and TransUnion. We’ve put together a list of five occasions that might mean you your credit score is worse than you think. If they ever happen to you – make sure you check your rating as soon as possible – and then start to repair it.

Phone calls from debt collectors

The second you have phone calls from a debt collection agency, you can guarantee that something is up. Most people who have debts won’t be surprised to hear from a collection firm, but what if it comes out of the blue? There’s a good chance that there has been a mix up somewhere – or that someone has used your identity. Make sure you check your rating and go through it with a fine toothcomb. If there is anything you don’t recognize in your report, act on it immediately.

Store card and credit rejections

Almost everyone knows someone who has been turned away from a phone contract, for no apparent reason. However, given that phone stores tend to use lower scores than anyone else, it means there is something seriously wrong. Credit cards are tougher to get, and many people with reasonable credit face rejection often. But, if it happens to you, it is essential to address what is going on and start repairing your credit rating.

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Home loan and mortgage rejection

It’s getting easier to take out a home loan again, although it can still be tough to get the amount you need to buy a home. Especially if you don’t have a deposit. There are companies out there that offer home financing for bad credit, of course. But, if there has been a mix-up somewhere along the line, it is essential to fix your issues. Make sure you check your credit before applying for any home loan, too. If you don’t pass a lender’s checks, you could miss out on your dream property.

Bigger interest

Lenders see people with bad credit as greater risks. So, if they do end up lending you a loan, it might come with a substantial interest in your repayment terms. If you notice that your interest on loans suddenly goes up, it’s a sure sign that there is something up with your credit score. If you haven’t done anything wrong, then there may be a case of fraud going on. If so, find out each credit agencies fraud hotline and give them a call.

Big deposits

If you move into a new rental property, and your landlord asks for a large deposit, there might be something up with your credit score. You may also face rejection from your tenancy agreement as some landlords won’t let a property to people with debt problems. Again, contact a reference agency and find out what’s going on.

We hope this has helped – stay tuned for more excellent financial advice!

Category: Loans

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