Whenever you take out a loan, no matter how big or small, it will be recorded on your credit history along with details about your monthly repayments. Those that pay back the loan on time and in full, keeping up with monthly repayments accordingly, will receive a good credit rating. Those that don’t on the other hand, i.e. those that struggle to pay their monthly credit bills and thus fail to repay the full amount on time and in full, will receive a bad credit rating.
Your credit rating affects your ability to get more credit in the future. So if you are trying to make home improvements and perhaps need a loan or want to remortgage to do so, you will need to have a good credit history to get the best interest rates and loan deals. But how do you know what your credit rating actually is? You can check credit report online with Credit Expert. This service delves into your past to not only reveal your current credit score but it also gives you your entire credit history in one report.
If you have a bad credit rating, there are things you can do to improve your score and if you check credit report online you are on your way to finding our just what you need to do.
The most important thing to do is pay your bills in full and on time. You should also work on getting rid of the biggest debts and the ones with the highest interest. Do not apply for new credit until you have got on top of current credit deals. Remember, it takes time for your credit rating to change. Keep on top of changes and check credit report online regularly.
There are several ways you can get credit to make home improvements and the amount you can get and where you can get it from will depend on your credit score. You can remortgage your property. If you are currently paying back your mortgage repayments without any problem, even if you are having small problems elsewhere, such as with credit and store cards, this is probably your best option as you should be able to get a good amount of money and still receive a pretty good deal.
You can take out a loan, but if you are having problems with other repayments you may not receive a good deal, may have to pay a higher than advertised interest rate or may be refused out right.
If you use a current credit card that already has a high limit despite late payments, you could be setting yourself up for problems in the future if the credit then spirals out of control. You should review all your options once you’ve checked your credit online. The Telegraph here http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/9113180/The-best-credit-card-deals.html has a great personal finance section with information on credit cards and loans.