It seems paradoxical, but 'the better off you are, the less you pay' and 'the worse off you are, the more you pay' both hold true in the world of credit. The lower your credit score, the higher the charges you will face on your loans and other borrowings. You may be asked to pay a deposit, or a larger deposit, and you may have to agree to pay a higher rate of intrest to secure the funds.
You could say that it's unfair - those least able to afford it shouldn't have to pay most . But it's all to do with the level of risk you pose to the lender. To make the deal work for them - and they are in business to make a profit - they need to be sure you will meet the terms and conditions of the offer in full. They need to know that there's a better-than-good chance that you will make your repayments on time, and that you will see the arrangement through to its conclusion. If you don't, they'll lose money. That's why they check your credit score first.
If your credit score is too low for their threshold, they won't lend you the money. If they see you as a borderline case, they may advance you the money, but at higher cost or with further conditions attached. If your credit rating is lower than it should be for no good reason, you will be paying more than you need for credit.
Your credit score is based on the data in your credit report, and it is entirely possible that some of this information may be incorrect, out of date or just missing altogether from your record. You can only find out if your record is right by reading and checking your personal credit report. If you discover anything wrong, anything missing or anything you don't recognise as relating to you, the credit reference agencies that compile credit reports will advise you on how to proceed, and who to notify. Checking your credit report regularly can help you identify any attempts at identity fraud or theft at an early stage, and stop criminals from ruining your financial reputation.
Your credit score is an important element of your financial armoury - a good score and easy access to low-cost credit can help you balance your finances, and cope with the unexpected expenses and emergencies that always seem to arise at the worst possible times. Protect your financial reputation and make sure you have the credit score you need - review your personal credit report today.
Source http://www.basingstokeobserver.co.uk/
You could say that it's unfair - those least able to afford it shouldn't have to pay most . But it's all to do with the level of risk you pose to the lender. To make the deal work for them - and they are in business to make a profit - they need to be sure you will meet the terms and conditions of the offer in full. They need to know that there's a better-than-good chance that you will make your repayments on time, and that you will see the arrangement through to its conclusion. If you don't, they'll lose money. That's why they check your credit score first.
If your credit score is too low for their threshold, they won't lend you the money. If they see you as a borderline case, they may advance you the money, but at higher cost or with further conditions attached. If your credit rating is lower than it should be for no good reason, you will be paying more than you need for credit.
Your credit score is based on the data in your credit report, and it is entirely possible that some of this information may be incorrect, out of date or just missing altogether from your record. You can only find out if your record is right by reading and checking your personal credit report. If you discover anything wrong, anything missing or anything you don't recognise as relating to you, the credit reference agencies that compile credit reports will advise you on how to proceed, and who to notify. Checking your credit report regularly can help you identify any attempts at identity fraud or theft at an early stage, and stop criminals from ruining your financial reputation.
Your credit score is an important element of your financial armoury - a good score and easy access to low-cost credit can help you balance your finances, and cope with the unexpected expenses and emergencies that always seem to arise at the worst possible times. Protect your financial reputation and make sure you have the credit score you need - review your personal credit report today.
Source http://www.basingstokeobserver.co.uk/
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