When you apply for a personal loan, a mortgage or a credit card, the lender will check your credit rating. It depends on the lender with which credit scoring agency they check your credit rating. If you have a poor or fair credit rating they may decline giving you the loan or credit card. They [...]
When you apply for a personal loan, a mortgage or a credit card, the lender will check your credit rating. It depends on the lender with which credit scoring agency they check your credit rating. If you have a poor or fair credit rating they may decline giving you the loan or credit card. They will not state the reason and you cannot dispute it with them. If your credit rating is good but it’s on the lower side they may decide to charge a higher interest rate. The reason is that you are a greater credit risk and may not be able to repay the loan. If you are refused a loan, because of your poor credit rating, you have two options. One is to try and get a loan from the sub-prime market. The sub-prime market consists of those lenders who are ready to give you the loan but at a high interest rate. Or they may also not give you the amount that you have applied for. The other option and which is a better option is to pay your creditors on time and improve your credit score. Keep checking your credit scores so you know your credit rating.
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