Will A Bad Credit Score Stop You From Borrowing?How will you know if you have a bad credit score? In truth, if you have suspicions that you may have a poor credit rating, you already know why. There was that missed payment two years ago and exceeding the overdraft for two months after the car broke down. We all have these little mishaps. A bad credit score can come from something minor to something very major, perhaps a property repossession for example. Obviously, if you have been repo'd in the last few years, or declared bankruptcy, getting a loan of any sort will prove to be difficult. To put it simply, if your loan repayment record was so poor that you know information was passed to the referencing agencies (perhaps a court order or the start of legal proceedings) then you can bet it will be on file. Generally, the nasty things that we want to forget stay on file for between six and ten years, depending upon where you are. This means that you can escape these problems eventually. However, there are scales. It may look like a bad credit score to you, but if you chose your prospective lender wisely, it may not look like too much of a problem. Remember, every segment of the loans market has companies desperate to lend. If you have some had some problems in the past, you just need to look outside of the big few lenders. In my old mortgage broker days, I used to find that people had unrealistic expectations. If they had a bad credit score, I could still find them a lender and a mortgage. That was no problem. But, they only seemed to want the biggest of the lenders. This despite them knowing (deep down) that they could not qualify for their great deals and terms. Yet, these customers would still want to 'just try' because they may be 'lucky'... It used to waste everyone's time and cause dreadful delays with their hoped for house purchase. But yet, they just had to know. I guess it is simply human nature. Just remember that a bad credit score need not be a massive problem. If you have one, you just need to be realistic about where and from who you might obtain your next loan. To read more about credit scores, please visit the following pages:
Credit Score
|