If you have been considering making an application for a loan of any kind, a large part of what will affect your chance of being accepted for that loan is your credit history. It doesn’t matter what kind of loan it is, whether it’s a mortgage application, car finance or a loan to renovate your home, your credit history will be one of the first things that the underwriters look at in order to make a decision.
The problems arise when you have a low credit score. This means that the high street lenders may stay away from you and choose not to lend to you.
Question – So What Can I do To Improve My Credit History?
Answer – There are lots of things you can do to start making improvements to your credit history.
To start with, you will need to develop your credit history in order to give the lenders something positive to look at, especially if you are a younger person and have very little credit history to speak of.
One of the ways you can improve your credit history is by registering to vote. Being on the Electoral Register gives potential lenders a way that they can trace your identity and home address, thus making your application that little bit stronger.
If you already have outstanding credit then another great way of improving your credit history is to ensure that you met the minimum required repayments when they are due. For example, with a credit card you always have the minimum repayment amount on your statement every month. By meeting that minimum repayment amount you are showing that you are in control of your borrowing.
Did you know that when you pay your car and home insurance in monthly instalments you are entering into a credit agreement? By meeting those instalments every month you are showing that you are responsible at making the repayments and this will improve your credit history. The same goes with your utility bills. Unlike your insurances, no credit agreements are put in place with your bills, but by paying them in full and on time shows lenders that you can be trusted and improves your credit history.
Making savings is a fantastic way of proving to lenders that you are responsible with your finances. By regularly paying into your savings account you are showing that you are capable of continuing with your current lifestyle, as well as being able to repay any additional borrowing you might look to be applying for.
The bottom line here is that you need to have evidence that shows you can be trusted with the money that you are looking to borrow and that you can afford to pay it back without affecting your existing lifestyle.
There is still hope if you do have a bad credit history as George Banco guarantor loans exist to help those with a less than perfect credit history. Provided you have someone that trusts you and is willing to act as your guarantor for your loan application that is prepared to make the repayments if for any reason you are unable to, and that you meet the required criteria, then you could look to apply for one of our guarantor loans.
In order to check if you meet the criteria you can check our guarantor loan FAQs page to check the full details before looking to consider any application.
With a George Banco Guarantor Loan you could borrow from £1,000 to £15,000 payable over 12 to 60 months from 36.9% APR
Here is a representative example:
Borrow £3,500 over 36 months
Interest Rate 41.4% Fixed
Repay £170.56 per month
Representative 49.7% APR
The total charge for credit including the interest totals £2,640.16. Total amount repayable £6,140.16. Representative APR of 49.7% fixed.
So the next time you ask yourself the question, what can I do to improve my credit history? Consider some of the above suggestions and you will be well on your way to doing so.