An individual’s credit score is an indicator of the credit-worthiness and ability to meet loan repayments. Lenders depend on credit reference agencies to provide a credit history and score for loan applicants for the purpose of evaluating whether to approve or decline a loan application.
Depending on what the loan is needed for, having a loan application refused may present an individual with some financial hardship. Declined loan applications, whether for larger loans like mortgages or a smaller online loans, also impacts their credit history. For these reasons, it is important to develop a healthy credit history and raise the credit score to a level that is favourable to lenders.
If you are worried about not being approved for a loan because of your credit history, PiggyBank offer loans for people with bad credit, so you may be able to get access to cash for an unforeseen circumstance.
Factors that contribute to credit score and credit-worthiness in meeting long or short term loan requirements include history of credit payments or defaults, number of active and inactive accounts, present financial obligations and outstanding debt; listing or non-listing on the electoral roll; and any attached county court judgements (CCJs).
Lenders match long and short term lending criteria with an individual’s creditworthiness from their credit reports to determine their ability to make future repayments on the type of loan they are applying for. Ensuring that credit reports are accurate is essential to obtaining credit or loans. By registering with a credit reference agency, individuals may access their credit reports and provide relevant information for their accuracy.
The credit score highlights a person’s financial integrity and should be viewed seriously, due to its impact on creditworthiness and choices in obtaining loans with good loan terms.