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A bad credit rating is not a good thing to have
hanging over you. It can limit your borrowing
options on mortgages or even standard loans. The
last things you need are county court judgments,
late payments or even bankruptcy notices on your
file, these will just add to your problems.
In most cases, the
only means of credit available is through what is
known as the sub prime market, where borrowers are
charged high rates of interest to reflect the high
risk to the lender. Most lenders go through a main
credit reference agency for information on your
financial past; Experian is the main player within
the lending market. They compile credit histories
from a number of sources, including the electoral
roll, county court judgments and how effectively
past debts have been paid. Every time you apply for
say, a credit card they will
have a record of it.
Under the data
protection act a lender must say why you have been
refused credit, this will be available for to see on
your Experian credit report. Many mistakes can be
made and it’s up to you to put it right before you
apply for that all important loan, credit card or
mortgage
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