My credit score and payday loans

You want to find payday loans, but can you secure one with your credit score? 

What makes up a credit score? 

Firstly, you need to understand what affects your score so that you can learn how to improve it. 

  1. Every time you make a credit application, for any type of loan – car, home, furniture, electronics etc – it is recorded by the Credit Reference Agencies. Naturally, this includes payday loans. This is called your credit file ‘footprint’. Try not to make too many. 
  2. The age of your credit history. The longer you have a stable credit history, the more lenders will view you as trustworthy and a lower risk to them. 
  3. Length of time at your current address. This impacts your credit file as well. If you move around a lot, it gives lenders the jitters, again, it is about stability. 
  4. Maxing out your available credit. Don’t do this. If lenders see you have taken up all the credit your bank has offered you on your credit card, they will become wary. Use as little credit as possible at all times. 
  5. No credit history. This one might sound daft, but having no credit history is actually a bad thing. On the one hand it shows you have no adverse debt, but on the other it says to lenders that you are an unknown risk. 
  6. Defaults. Never default since this is extremely damaging to your credit score. 
  7. CCJ’s. Never good, these tell lenders you are a bad risk. 

Is your credit file accurate? 

Credit files are deemed accurate unless you challenge them and successfully demonstrate that something is amiss. No one but you will do these checks. Therefore, it is wise to consult your file and make sure everything is as it should be. 

Where can I find my credit file? 

There are several companies that are CRA’s or Credit Reference Agencies. The main ones are: 

Experian, Equifax, TransUnion, Crediva. 

All of these will charge a fee but using a company like ClearScore can be free. 

The Quick Loan Shop Ltd

The Quick Loan Shop Ltd has brought you the above Blog post and can help you secure the payday loans you are looking for.