What’s Wrong With My Credit Score
Have you ever applied for credit, whether it is car finance, a mobile phone contract, credit card or a personal loan and been turned down because of your credit score? You are not alone and the reasons can feel baffling sometimes. Sometimes it feels like we are trying to do everything right, using credit, paying bills and rent on time but occasionally coming up against the Bank’s ‘Computer says NO’.
A credit score is an estimate of the ability of a person to fulfil their financial commitments, based on previous dealings. Credit scores are not only used in lending but are often checked for rent agreements and utility companies. Credit is often an essential part of family life for funding everyday essentials and major purchases. It is an essential part of managing cash flow and budgeting peaks of expenditure.
Credit scores are given by credit reference agencies to lenders such as Banks, loan and credit card companies and are one of the ways that help them assess credit applications. Every three months the Bank of England conducts a ‘Credit Conditions Survey’ with U.K Banks and Building societies to assess how they are lending to the public and how they see future lending.
The most recent feedback from the Banks suggest that they have been reducing the supply of money through lending towards the end of 2017, whilst planning to tighten up scoring criteria by increasing the credit scores needed to be accepted for unsecured borrowing going into the start of 2018.
If it feels like you keep getting turned down for credit, maybe it’s them not you?
Applying for a loan at PCCU is different. Although we do check credit history, we do not operate on a computer says no basis. Each application is assessed individually by a person – not a computer. We look at affordability, income and expenditure and only lend amounts we are confident you can afford to pay back. We also promote ‘Save as you Borrow’ which allows account holders to build savings whilst reducing loan balance, meaning the borrower is better placed in the future to withstand unexpected expenditure.
PCCU reports to the credit agency Experian for all loans taken which means if an account holder makes the correct payment on time their credit rating will improve. As a not-for-profit community financial co-operative, PCCU is committed to offering products and services that help account holders manage their money and build up a history of good money management.
Applying for a Pennine Community Credit Union loan is refreshingly simple. You can apply for smaller loan values that you would only get with high rate lenders, but at a lower rate of interest, whilst being competitive with loans up to £15,000. Apply online today or pop into one of our four branches found in Nelson, Colne and Burnley, to complete a loan application form. If you require any further information contact us today.
If you’ve been turned down by the Banks or other lenders and are left wondering what is wrong with your credit score, then speak to PCCU today – you may find out it was not you all along.