Consolidate Loans And Debts
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Whenever you apply for credit, it is not simply a matter of the creditor saying 'yes' or 'no' randomly - it all comes down to your credit scoring.
Your score is a financial indicator of the credit risk you present - specifically, whether a creditor should give you credit or whether they shouldn't, entirely determined by whether you are evaluated as a high or low credit risk. Your credit report - which is kept by all the principal credit reference agencies, such as Equifax and Experian - presents any type of credit you have had in your history (going back 6 years), in addition to existing debts.
When you make an application for any kind of credit, the loan company will perform a credit search - and will appoint you a credit score established from the data in your credit record. When you have numerous debts - and particularly if you have missed repayments or have paid them late - you will have an adverse credit score.
The lesser your credit score, the less likelihood you have of being given credit because a smaller credit rating suggests there is a greater likelihood of you failing to pay off your debt on time.
It also shows whether you are on the electoral roll plus any financial associations. If you do not appear on the electoral roll, it might affect your potential for being accepted for credit, as your address is not 'proven'. A financial association is someone with whom you have been financially connected, at present or at some other time. It might be a previous partner, either of your parents, or possibly a person who lived at your home address prior to you and whose name is not yet deleted from your record.
When the person or people included as a financial association are not associated to you - i.e. you have no ongoing mutual financial commitments and the person is not presently living where you do - then you may ask that the credit record agency have the details removed.
Continuing to have them on your record - especially if they have experienced financial difficulty previously - can have a detrimental affect on you accessing any credit.
When looking at approving credit, loan providers will also want to know what amount you are spending on any other debts you have - if you have too many, they might well turn you down for credit, even when your rating is good. This is because they could determine you as overstretched with a further debt to deal with.
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