Your credit score is one of the most important factors when determining how qualified you are for a loan. Credit card companies use your credit score to determine things like the interest rate that they charge you, how much you are allowed for a cash advance and how much your total credit limit will be.

Your overall credit rating takes many things into account. Your income level, how many on-time payments you have made in the past and your total debt level are all important factors. Many credit card companies offer cards to various credit ratings, even bad credit. This allows those with credit problems in the past to rebuild their credit rating over time by making timely payments.

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Credit Agencies

There are several different credit reporting agencies which provide credit scores and profiles. They use various different models of scoring systems which all vary from one another. Some of these companies are TransUnion, Equifax and Experian.

Specific to the United Kingdom there are several statistic techniques which are utilized to determine the potential for a borrower to pay on time. The purpose of these techniques are to determine if a person will pay their loan payments in a timely manner and be a good risk for the loan company.
There are various factors involved in using these techniques. Basically, they take the profiles of borrowers that ended up defaulting on their loans or paying their payments late and then compare them to the profiles of borrowers that paid on time. The factors are compared in order to come up with an accurate idea of how much risk exists given the borrower’s particular situation.
Some lenders even go as far as predicting not only if the client will default on the loan but also will try to figure out how much of the loan will go into default status. This of course is very difficult to predict and one of the reasons there is no way to tell if the client will be approved for a loan to begin with.
If you are dealing with past credit issues and need help, there are ways to deal with the situation. There are a number of steps that can be taken in a systematic fashion in order to improve your credit file and rating.

With the help of  SJ Consultants you can make the necessary improvements which will help you save £1,000’s on your next loan.

Here are credit tips that may help you improve your Credit Rating

First things first. Try to pay down all of your existing debt.
One of the factors in your credit worthiness is your debt to income ratio which basically looks at how much income you have and compares it to how much debt you have. The lower your debt level the better your debt to income ratio will be.

If you are able to pay off your credit cards then you should still keep the account open even if you don’t have a balance. Closing all of your available credit lines can actually have a negative effect on your overall credit rating. SJ Consultants can help guide you through this process to determine exactly what needs to be done.
Ensure that you make an effort to pay all of your payments in a timely manner on or before the due date. Late payments mean negative marks on your credit file. Start becoming more aware of what you spend your money on and get rid of expenses that are not needed.
When it is possible pay your bills using cash instead of credit cards. Credit cards can result in your debt levels creeping up over time and put you back in a bad situation. Paying in cash will force you to stay within your means.
It is always a good idea to have a look at your credit report on a regular basis. Every few months or at least once every six months is highly recommended. This will keep you aware of what is happening with your credit rating and what changes need to be made.
Credit counseling can be a valuable tool to help you get organized and get on the right track. Often times credit counseling can merge all of your debt together so you can pay off your problems with one simple monthly payment. There is usually a fee involved but it can be worth it under the right parameters if it helps you improve your overall situation.