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When you apply for credit in any shape, whether it be with
a credit card or loan you will have your credit report searched.
All lenders use your credit report as a basis for their
decision as to lending you money or not.
On
your credit report you will have a score. A bad score will
be indicative of a history of problems, non-payments and
other things such as CCJ's. A bad credit score can mean
the difference between being accepted or declined and ifyou
do get accepted it will be the basis for the calculation
of your interest rate. Lenders have different formulas for
calculatiing your interest but the credit score forms the
basis.
Some
problems you may have with your credit report are
- Missed
payments on cards, loans and mortgages
- Sometimes,
a lack of credit history may hold you back
Some
things which should help in a positive way include
- A
well managed portfolio of credit with no missed payments
- A
long credit history showing no problems
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