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You have an older or larger default on your credit file
If you’ve missed between three and six payments, on a credit account you may be declared in default. Defaults are serious. Often a lender will automatically decline an application if there has been a default. This is especially the case if the default is large. It can even be the case if the default was from a…
Read MoreYou have a default on your credit file
If you’ve missed between three and six payments, on a credit account you may be declared in default. Defaults are serious. Often a lender will automatically decline an application if there has been a default. Importantly, defaults remain on a credit file for six years. Once a default is on your file it cannot be removed. Tip: If you…
Read MoreYou spend a lot on paying back credit each month
Creditors take a look at how much you’re spending each month on credit commitments. If this is too high they may reject your loan application. This is known as the ‘monthly debt ratio’ and relates to the ratio of monthly payments on accounts to monthly income. In other words how much of your income is…
Read MoreYou’ve been taken to County Court
A County Court Judgment (CCJ), even if it was from a long time time ago, still has a negative effect on your credit score. Consequently a CCJ can make it harder for you to get a loan. Over time this impact reduces, but some lenders will say ‘no’ even if the judgment was from several…
Read MoreWhy missing a mortgage payment is so important
You may have missed one or more payments on your mortgage recently. This can be a problem for lenders because a mortgage is the most important bill. Missing a payment might be seen as the beginning of a debt problem. However, it may have been an oversight or beyond your control. Tip: You should try…
Read MoreYou’ve never been insolvent
You have never been insolvent. Or at least haven’t in the last six years, which is as far back as your credit report goes. Insolvencies include bankruptcy, debt relief orders, Individual Voluntary Arrangements and their Scottish equivalents. If a form of insolvency was on your file, it would be very hard to obtain credit. If…
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