Credit ratings affect your ability to borrow money. It’s what banks and lending companies use to decide if you qualify for a loan or not. For instance, if you plan to apply for an auto loan with poor or bad credit, you’ll need to find more considerate companies like BlueSky Auto Finance or else you’ll simply get a rejection.
Here are some factors that affect your credit rating:
- Existing Debt – Lenders become doubtful if you have any unpaid loans because it indicates that you’re not financially fit.
- Sticky Records – If you had missing or late payments, it will stays in your records for the next six years. This is also true if you’ve received a county court judgment (CCJ) due to unpaid bills. Even if you apply for auto loans with poor credit, anything unpaid can damage your credit rating.
- Multiple Applications –All your credit applications are recorded, so avoid making multiple transactions if you aren’t decided yet. If you simply want to compare prices, it’s ideal to look for a “quotation search” instead of a “credit application search.”
- Residency – Lenders are more comfortable with those who have a permanent address. Changing locations every so often might make them think that you’re not reliable.
These are among the things to take note of to avoid damaging your credit rating. Look for auto loans for poor credit instead of applying for a regular loan to increase your chances of approval.