Bad credit score? Key influencers of your credit record

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Are you unsure as to why you may have a bad credit score – or you’re simply turned down by lenders when applying for a credit card or loan? Sometimes it’s difficult to understand why, as it feels like the reasons for any financial application dismissals can be hidden away.

Ahead of an upcoming blog on the ways you can improve your credit rating, we’re going to list a number of the reasons why you may have a bad credit record. Consider noting down the ones that affect you – you never know, you may be able to make immediate changes to your lifestyle and actions to take big steps to a more fruitful financial future.

  • Missing or late payments

Whether you’re paying off a mortgage, a personal loan, credit card, utility bills or even a mobile phone contract, any late payments you make will be listed on your credit file for six years – and these will be at the forefront of any decision made by lenders in future.

  • Existing debt

While the definition of “high amounts of debt” varies from lender to lender, any indication that you’re already struggling with paying off other agreements can put off other financial institutions.

  • Credit cards or agreements you don’t use

Lenders won’t feel as happy to give you a deal on a loan or credit card if you have other credit available; it’ll show on your credit report whether you’ve dipped into it or not.

  • “Financial association”

If you’re involved in a joint account with anyone who has an underperforming credit history, this will affect your chances of personal credit agreements – you have to see it as being just as responsible for their position as your own.

  • Not being a registered voter

A lender’s primary means of verifying your identity is to check the electoral register. Simply putting your name on this could have an immediate positive impact on your standing.

  • Regularly moving home

If you don’t have a dependable fixed address, financial institutions will feel more uneasy about lending to you.

  • A county court judgement (CCJ) on file

If you have been summoned to court for an unpaid bill, this will have a huge impact on your credit score. These can stay on file for six years, and are one of the worst things to have against your name.

  • Finally (and perhaps most rarely): credit report mistakes

There have been a number of reports that things can reside on people’s credit reports that is incorrect or inapplicable. In some extreme cases, it may be related to someone fraudulently taking out credit under your name.