How to get good Credit HistoryGetting a good credit rating
The credit file is managed by Equifax, Expert and several other credit assessment firms. Those credit institutions keep a history of what credit you took out and how good you are at disbursing that credit. With all your invoices paid on the due date and on schedule, and with no recent movements, you have a good chance of having a good creditworthiness.
If you have recently returned home, or if you have lost some credit or are in arrears, it is likely that you do not have a good creditworthiness. Those bureaus create credit stories from a variety of resources, to include the voter list, district courts rulings, and how effective past debt was in paying.
Whenever you open a new type of credit, it leaves an electronical imprint on your file. Decisions to reject a borrower for a loan are not taken by either Equifax or Experian, but by the lender on the basis of the lender's own criterion. An elaborate arithmetic equation is used to give each individual a credit rating that changes from period to period.
They are usually divided into a good creditworthiness, a good creditworthiness or a bad creditworthiness. Consider the credit coefficients below and this will help you judge which credit scoring bandsing that you are likely to have. Dependent on your creditworthiness, if you are applying for a new credit (or other credit facility), the creditor will ask for your creditworthiness from one of the credit bureau.
When you have a good credit standing, then you will probably be provided with a lower interest lending facility, while when your credit standing is bad, then the lending interest usually will be higher. The following is a listing of the 6 most important factor that will lower your credit value.
Are you interested in finding out what your credit rating is, or what information these credit bureaus have about you, you can get in touch with them and get your credit reports for a small charge. Consumers Credit Advice Centre: a charitable organisation financed by the consumer finance sector that specialises in credit risk mitigation schemes.