The Things That UK Lenders Like to See on Your Credit File, (and? What They Don't Like to See!)
Lenders are quite fussy about what they like to see on your credit report. So much so that you will have a hard time to meet their high expectations. But what exactly are they looking for? In this article we take a look at one aspect of your credit history that lenders have a keen eye out for.
Most revolving loans, loan accounts and credit cards will show a monthly payment pattern describing your history for up to 6 years, although often only the last 3 years are visible on your credit history. Usually a revolving credit account or credit card account will be shown as a row of numbers, each one representing a single payment month. Often '0' is used to show - on time, '1' is used to show 30 days late, '2' - 60 days late, and so on through to 9, which is generally indicating an account that has been written-off or sent to a collection agency. You should note that different credit reference agencies employ different codes but the agency concerened will normally give you a full explanation of the codes used.
As an example a well kept credit card should look something like this:
0000000010000121211001000000000000011000000100000
Even though some payments were late the card is generally well kept - lenders don't normally expect perfection so the above example looks pretty good.
Conversely a bad credit card might appear something like this:
0001234110012212341110001231113334456789999999999
Notice that even at the start the card was maintained erratically and unreliably, often falling into arrears. Eventually this lead to the card becoming delinquent and written off. Lenders don't like to see this at all.
Having credit cards and using them regularly and wisely, shows the lender that you are a model borrower. You are likely to be awarded around 50-100 bonus points for every loan or credit card that has been well maintained and/or paid back on time.
Jack Miles, Author of "The Complete U.K. Credit Repair Guide", produced the guide to help people restore a poor credit rating and enjoy the benefits of good credit. The guide shows subscribers step by step how to repair bad credit history, how loan application forms are scored, how to remove court judgments (CCJ's) and also how to best fill apply for loans to gain the best chance of approval.
For more information please visit The Complete UK Credit Repair Guide at http://www.creditsecrets.co.uk
This article is Copyright 2005 Jack Miles.
Reprint Rights: This article may be reprinted only in full (unedited), and complete with author's name and active links. All other rights reserved.
MORE RESOURCES:
 Reuters | Washington Mutual stock down on credit concerns Reuters - Citing the thrift's financial statements for the period ending June 30, Gimme Credit analyst Kathleen Shanley wrote that "many creditors have quietly been ... WaMu Drops Second Day as Gimme Credit Cites Liquidity Concern UPDATE: WaMu's Stock Down As Investor Confidence Drains WaMu spokesman: no need to rely on outside funding sources |
FCStone Group increases size of credit facilities Forbes, NY - AP 07.24.08, 3:55 PM ET FCStone Group Inc., a commodity risk management firm, said Thursday it has reached deals to increase the size of its credit ... FCStone increases credit lines Kansas City Business Journal FCStone Group, Inc. Announces Syndicated Margin Call Credit ... |
Cicero gas station reports attempt to disrupt credit card system Chicago Tribune, United States - An operator of a Cicero gas station called police Tuesday after finding that two men had climbed the roof of the business to cover up a credit card ... Rooftop gas theft scheme foiled |
 Wall Street Journal Blogs | Extra! Extra! Credit Concerns at New York Times! Wall Street Journal Blogs, NY - The NYT front page does not include a story about its credit default swaps. (nytimes.com) Shares of New York Times Co. are down 4%, but the newspaper ... Extra, Extra: New York Times (NYT) About To Get Downgraded To "Junk" |
Asian Stocks Fall on Credit Concern; National Australia Slumps Bloomberg - ``Investors are out there thinking everything's fine and another bank comes out and increases its provision for credit-related losses. ... |
Asian Stocks Fall Most in Six Weeks on Credit, Profit Concerns Bloomberg - ... fell the most in six weeks, snapping a four-day rally, after National Australia Bank Ltd. said credit losses may surge and Samsung Electronics Co. ... |
Credit cards Superprime slime Economist, UK - As the credit boom reached its peak, the firm’s credit-card business was growing by a dizzying 20% or more a year, with younger consumers with scant track ... |
Shaw's Credit Ratings Upgraded by Standard & Poor's Ratings Services MarketWatch - announced today that Standard & Poor's Ratings Services (S&P) has raised the company's credit ratings, including its corporate credit rating to BB+ from BB. ... |
Housing crisis spurs sharp jump in bankruptcies San Jose Mercury News, USA - Now, a growing number of filings are related to the housing crisis, say local judges, attorneys and credit counselors. In Santa Clara County, ... |
Peachtree Increases Credit Facility for Structured Settlement ... MarketWatch - BOYNTON BEACH, Fla., Jul 24, 2008 (BUSINESS WIRE) -- Peachtree is pleased to report that it has closed on the renewal and extension of a sizable credit ... |
Comprehending a Credit Report
Obtaining a credit report is an excellent way to begin taking control of your financial future. It's recommended that you review your credit report once a year, not only to be aware of your standing with creditors but to also keep abreast of errors and fraud.
Grants, Loans, Free Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth
You got creditors calling you everyday. You could lose the car or house.
Why Your Credit Score is Important
Your credit score can either haunt you or reward you. It all depends on how you handle your credit and payment activities.
Identity Theft - Guard Your Childrens Social Security Numbers
Identity theft is a growing concern among Americans, and rates among the top five complaints received by states' Attorney General's offices. A stolen identity can lead to tens of thousands of dollars worth of debt in the victim's name and it can take years to completely undo the damage done to the victim's credit report.
Teaching Students To Keep Out Of Credit Card Debt - The Parents Role
Parents have the full responsibility for their children and their education. It is up to parents to teach their children what's right and what's wrong, how to conduct themselves as good citizens, how to cross the road safely and generally protect themselves from harm.
Understanding the Function of Credit
What is Credit?Credit is the backbone and the engine behind the workings of the economy. Credit simply allows individuals and companies to borrow funds in good faith and pay it back over a specified time frame.
Why Credit Cards are a Bad Idea
Credit cards are just so convenient, aren't they? There's no need to carry any money with you ever again: you can just take one with you to the shop and pay the exact amount just by handing it over. If you haven't been paid yet, then you don't need to worry, because the money will still be there.
Choosing The Credit Card That Is Right For You
Credit cards represent an important part of our financial lives. Having the right credit cards is essential and will make a big difference to your finances.
Credit Score - Reporting Your Financial Health
Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not.
What is Credit Repair and How Can It Help You?
There are millions of consumer credit reports on file from mainly three major reporting bureaus which include Trans Union, Experian, and Equifax. These credit gathering agencies store huge amounts of data about every person that takes out a loan, credit card, or any other line of credit.
5 Ways To Prevent Credit Card Late Fees
Paying a credit card late fee is the same as throwing your money away. Late credit card payments can also hurt your credit score.
10 Ways of Reducing the Risk of Identity Theft
1- Check your credit report regularly2- Secure personal information in your home, especially if you have roommates, employ outside help, or are having work done in your home.3- minimize the amount of information someone can steal, do not carry extra credit cards, your Social Security card, birth certificate or passport in your wallet or purse, except when needed.
Credit Repair Kit Sound To Good To Be True? It Is.
A lot of people have bad credit. It is unfortunate that good people with good intentions are sometimes lured into credit card offers with outrageous interest rates or convinced to buy a new, overpriced car that they cannot afford.
Credit Report - How to Improve Your Credit Score
One of the great mysteries of life is how the three major credit bureaus (Experian, Equifax, and Trans Union) score credit. They all have secret statistical formulas for determining your credit score, but they are unwilling to divulge exactly what, exactly, constitutes your score.
Credit Establishment 101
There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true.
Credit Damage: Getting Compensated for Your Loss
Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured - tangible goods and services.
7 Ways To Squash Identity Theft
It is the scourge of our age: identity theft. Thieves learn an important part about your personal information, such as your credit card number, and they open accounts in your name and spend, spend, spend! Unfortunately, by the time you discover that you are a victim the damage is already done.
10 Simple Steps to Manage Your Credit
By far the greatest invention the banks have ever come up with came out in the 20th century. Also the new field of Credit Management was born with the invention of the credit card.
Taking Control of Your Credit History
Your credit history is important; in fact, in this day and age, only family and your time are more important than your credit history! The first time you established a payment commitment over a period of time for a purchase, you began your history of credit, and the credit bureau created your account. Payments such as the electric company, a rental agreement, a cell phone, a car payment or a low-rate credit card which you also have a responsibility to repay are not reported to the credit bureaus as a part of your credit history.
What is a Credit Report?
Ever wondered what is a credit report? If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report.