Credit Checking Explained - Unsecured, Personal, Mortgages
What is a Credit Check?
Whatever type of credit you are applying for, be it a loan, mortgage, credit card,
store card or hire purchase, lenders will need to carry out a credit check before
they can accept you.
Lenders need to perform these checks to see if the people they are considering are
already dependable with their current bill payments.
Let us tell you some more about how it works.
What is credit scoring?
This part of the credit check is carried out during the application process. You
will be asked to give details about your employment status, your address, your current
bank account and credit card (if you have one), and your income, among other things.
The lender will go through your answers with a points system, giving you marks for
each answer. If your score is above the limit set by the loan provider, you will
qualify for the loan.
What is my credit check report?
Your credit report file (or credit check file) began on the day you first opened
a bank account, and records every credit card you've applied for, every late payment
you've made and every loan you're paying off.
Most of the information on your credit check report comes from the companies you
have credit with, such as banks, retailers and finance companies. The file also
contains publicly available information such as your address and any County Court
Judgments (CCJs) against you.
You have every right to check your credit file: the Financial Services Authority
can help you with this. If you believe the information obtained for your credit
check is incorrect, you may file a statement explaining why. Inaccurate information
can be removed but no one can have accurate information removed from your record.
Can people with poor credit still get a personal
loan?
Yes, but unfortunately, lenders offering lower APRs tend to have stricter credit
check systems and are more likely to reject your application. You must ensure that
you are honest and answer 'yes' when you're asked whether you've had credit problems.
With JST Financial's 'Personal Loans Analyser' you can compare the personal loans
available that will accept applications from people with poor credit ratings. This
will save you the hassle of having your applications rejected, which can also show
up as a bad sign in future credit checks.
Now that I know more, which unsecured loan is going to be the right one for me?
Every application for credit is unique in its own way, so what we have provided
here at JST is our very own 'Personal Loans Analyser'. The information you provide
will not be submitted to any lenders and you certainly won't be subjected to a credit
check. PLA* is designed to help you decide which loan is going to be the right one
for you before making the full application for credit.
Click Here to Check Your Credit Rating for FREE