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The Things That UK Lenders Like to See on Your Credit File,
(and? What They Don't Like to See!)
Lenders are quite fussy about what they like to see on your
credit report. So much so that you will have a hard time to meet
their high expectations. But what exactly are they looking for?
In this article we take a look at one aspect of your credit
history that lenders have a keen eye out for.
Most revolving loans, loan accounts and credit cards will show
a monthly payment pattern describing your history for up to 6
years, although often only the last 3 years are visible on your
credit history. Usually a revolving credit account or credit card
account will be shown as a row of numbers, each one representing
a single payment month. Often '0' is used to show - on time, '1'
is used to show 30 days late, '2' - 60 days late, and so on
through to 9, which is generally indicating an account that has
been written-off or sent to a collection agency. You should note
that different credit reference agencies employ different codes
but the agency concerened will normally give you a full
explanation of the codes used.
As an example a well kept credit card should look something
like this:
0000000010000121211001000000000000011000000100000
Even though some payments were late the card is generally well
kept - lenders don't normally expect perfection so the above
example looks pretty good.
Conversely a bad credit card might appear something like
this:
0001234110012212341110001231113334456789999999999
Notice that even at the start the card was maintained
erratically and unreliably, often falling into arrears.
Eventually this lead to the card becoming delinquent and written
off. Lenders don't like to see this at all.
Having credit cards and using them regularly and wisely, shows
the lender that you are a model borrower. You are likely to be
awarded around 50-100 bonus points for every loan or credit card
that has been well maintained and/or paid back on time.
Jack Miles, Author of "The Complete U.K. Credit Repair Guide",
produced the guide to help people restore a poor credit rating
and enjoy the benefits of good credit. The guide shows
subscribers step by step how to repair bad credit history, how
loan application forms are scored, how to remove court judgments
(CCJ's) and also how to best fill apply for loans to gain the
best chance of approval.
For more information please visit The Complete UK Credit
Repair Guide at http://www.creditsecrets.co.uk
This article is Copyright 2005 Jack Miles.
Reprint Rights: This article may be reprinted only in full
(unedited), and complete with author's name and active links. All
other rights reserved.
MORE RESOURCES:
Clock ticks down on credit bureau class-action dealIndianapolis Star, United States - 30 minutes agoIn a class-action settlement, credit bureau TransUnion has agreed to provide free credit- monitoring services to millions of consumers to settle claims it ... |
MORE COLLEGE CREDITChicago Sun-Times, United States - 10 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
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