How you can improve your loan eligibility
Lenders will make a decision about your eligibility based partially on information held about you by credit reference agencies, such as Experian, TransUnion and Equifax.
This credit information helps to build a picture of you and your financial history. While it is not always possible to find a better paid job and increase your income, you can improve your credit rating.
Six ways you can improve your credit score
- Make sure your name is on the electoral roll. This builds credibility with lenders.
- Review your debt. Consider how much you owe across all your borrowings and if you can consolidate or reduce your debt. If you need help, there is free and impartial advice widely available.
- Reduce your plastic. Minimise the number of credit and store cards you use.
- Check your credit files. It’s worth seeing if there are any mistakes or fraudulent activity recorded against your name. Report any errors and get them corrected. Credit reference agencies (CRA) Experian, TransUnion and Equifax are obligated to give you a copy of your credit report, free of charge. Each may hold different information on you, so it is worth contacting all three.
- Keep on top of your paperwork. Don’t fall behind when paying bills.
- Limit your credit applications. If you apply for a lot of credit in a short space of time, lenders might conclude you’re struggling financially. Look for quotes from lenders that do ‘soft’ searches which are not recorded by CRAs and will not impact on your credit score.
A Personal Loan is just one type of finance and may not be right for your circumstances. Read our guide to borrowing options to find out more.