| Consider the following scenario: you have just passed | | | | compile includes current and past addresses, the |
| a driving test and decided to contact the nearest car | | | | amount of debt you carry, type of debt and the |
| dealer in order to buy your new, shiny four wheels. | | | | lenders' name. It can also include debt payment history, |
| You arrive at the place to secure a deal only to be | | | | how often credit report inquiries are made as well as a |
| told that your credit score is poor. Your application is | | | | history of any bankruptcies. Most of these services |
| rejected. You will have to stay off the roads for a | | | | are free of charge with some agencies applying a |
| while until your debt is improved. | | | | small membership fee when you want an instant credit |
| Not only can low credit rating determine unfavourable | | | | score online. |
| interest rate on your loan, but also it might prevent you | | | | Credit score is a number between 0 and 999, with 999 |
| from getting a car altogether. What the potential | | | | being the best credit score and 0 the worst. This |
| borrowers don't realise is the necessity of keeping | | | | generated number is used by lenders as a general |
| regular checks on the credit rating. A low credit score | | | | indicator of your creditworthiness: higher your score, |
| can cost you substantially more in additional interest | | | | the better. Obviously if you discover your credit report |
| payments when compared to what you would pay | | | | is accurate, but your credit score is low you will need |
| with good credit. Generally there's a lot more to having | | | | to get a better rate by paying down your debt. Quite |
| a robust credit history than just paying the bills on time. | | | | often borrowers are unable to prove their credit |
| What if your credit score is low and you can prove | | | | history as they never had a loan or a credit card and |
| perfect credit history? Mistakes can happen, especially | | | | remain transparent to credit checks. In this instance the |
| for people with similar names, so check for any | | | | opposite rule applies: not having any recorded debt can |
| inaccuracies on your report. If you can point out any | | | | have a negative impact on your score. This very often |
| errors or information relating to someone else contact | | | | affects young people, immigrants or new residents. |
| your credit agency and get them corrected. They will | | | | A couple of months have passed. After a strenuous |
| have to investigate the items in question and send a | | | | battle with your credit score indicator you decide to |
| confirmation of the corrections within 30 days. | | | | pay a second visit to your local car dealer. This time |
| Nowadays anyone can approach some of the biggest | | | | you pass all the checks. It's a sound result on your |
| credit agencies and order a free credit report with the | | | | credit score and a tip top car to drive back home. |
| details of their debt history. The information they | | | | Happy motoring! |