Check Your Credit Rating
It's a fact that most people have no idea about their credit rating. Credit card companies and other lenders, however, use them to decide what sort of a risk you might be when you apply for credit. Most people know that having a poor credit rating will mean you will find it difficult to obtain a credit card or loan, but many do not realise that even a small blemish on your credit report will also impact on the interest rate you receive even when your credit application is approved.
Most, if not all lenders publish attractive loan rates of 7.9% for example. However, the fact of the matter is that less than 5% of the population will get this rate. This is because the lender will check your credit rating and unless it is absolutely clean, they will perceive the risk of lending to you to be greater and therefore charge you a higher interest rate.
What many people do not understand, is that if you are declined for credit, this is recorded in your credit report. If you then make further applications in quick succession and are again turned down, this could lead you to being declined for credit where you might have otherwise been accepted.
This is why you need to understand your credit rating and be realistic about the rate you might be offered. You will be offered the rate the lender thinks is correct for you circumstances. If you disagree with that lender then you should order a copy of your credit report and see if there is anything untoward on it and then apply to have it removed.
In the first instance, you could take advantage of the Free Credit Jungle rating, which will give you an indication of what your credit report says about you. If you then decide to apply for a loan, we will match you to the most appropriate lender for YOUR circumstances, greatly increasing the chances of you being accepted. Remember this might not be the lowest rate on the market, but the best rate for YOU.
