Can being refused credit affect your credit score?
If you are refused credit then it will not show up on your credit report. Whilst not directly having a negative impact, the fact that you made an application will show up as a footprint. It’s therefore a good idea not apply to a huge number of places at once as lenders can see these footprints and may become concerned that you may have financial difficulties or you might be committing fraud. It’s important that if you are refused credit, you find out why before making another application to avoid being turned down soon after for a second time.
What does a poor credit score affect?
A poor credit score can have a pretty big impact in the modern world. It could mean that you would be rejected if you apply for a mortgage. So if you’re thinking of buying a house and you know there are problems with your credit, then you should really try everything to rebuild it for at least one year before you apply.
A poor credit score can also prevent you getting the best deals and promotional rates on certain credit cards. It can even prevent you from getting 0% interest deals that could make your life easier and could force you to take a high-interest alternative that will cost you much more in the long run.
You may struggle to get access to loans, too. Utility companies may even demand upfront payments for poor credit scores, leading to further inconvenience from a financial perspective.
If you have missed payments or you have struggled to meet your commitments in the past, then you need to know how to build up your credit score. A prepaid credit card or small loan can help you on your way, so check out the best deals right now with us. You can compare some of the biggest names in a single submission by letting us take care of all the hard work for you.