Few basic things you need to know about credit history

Financial companies know your credit history, and you should know it too if you want to be on equal terms.

11:54 07 October 2013

Many people would like to know more about their credit history in order to improve it or to make sure that they qualify for various loans.

The credit history of a loan seeker is equally crucial for financial companies, who always analyse certain factors before taking a decision to grant a certain individual a loan. So what is credit history? How can you view your credit history? Let us see.

• The credit history is a file that special companies put together by following your loan history and your ability to cope with loans. This file can be made available to any bank or financial institution that you want to take a loan from;

 

• Banks and other financial institutions check your credit history to see if you are able to pay back loans on time, and the amount of money you can manage to repay a month. So if you ask for a much larger amount than you were able to repay in the past, they may decline your loan request, based solely on your history;

 

• You can check your credit history online, for a fee of £2, on one of the following websites – Equifax, Experian or Noddle; by knowing your history, you can determine how much to ask for when asking for a loan;

 

• If you have no credit history at all, some financial companies may decide not to grant you any loans, as they don't have any concrete information about your intention and ability to pay back loans;

Here is a small tip on improving your credit history.  Take on small loans and always repay them on time. This will prove that you are serious about paying back your loans and may pave way for larger loans in the near future.