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Why payment history matters
Your repayment history on credit agreements is taken into account by a lender when considering you for a loan. A credit report details all of credit accounts you’ve had over the last six years. This includes mobile phones, catalogues and some utility bills. Each account displays numbers showing if you ever fell into arrears. For…
Read MoreAbout indebtedness
When considering a loan application, lenders must make sure that the debt is affordable. This goes beyond checking if you have enough money to make each monthly or weekly payment. The total amount you owe is also important. Lenders will look at all of your debts and compare this to your income to see if…
Read MoreSummary insolvencies
An insolvency is a form of bankruptcy. It includes Individual Voluntary Arrangements, Debt Relief Orders, bankruptcy and their Scottish equivalents. Any lender seeing this information is likely to turn down your application for credit. You can score 15 points if you’ve never been made bankrupt, but that score falls if you were insolvency in the…
Read MoreSummary defaults
A default is where you miss several repayments on a credit agreement. Defaulted accounts remain on your credit file for six years. Many lenders will automatically reject you if you have a default. If you’ve not had a default in the least year you score 15 points. Read more about defaults
Read MoreSummary revolving credit
Revolving credit is another word for card limits and overdrafts. If you’re constantly close to your limits, your credit score will be lower. Furthermore, if lenders suspect you’re using credit to pay for day-to-day living expenses, you may be declined. Tip: try and get your credit card balances below 50% of their limits as soon…
Read MoreSummary electoral roll
One of the first things a lender will check is if you’re on the electoral register. Lenders may automatically refuse you credit if you’re not registered to vote If you’re on the Electoral roll, your NestEgg Borrow Score increases by 10 points. Read more about the electoral roll
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