Education Consolidation

Although it's important to research the loan market properly make sure you don't make multiple full scale applications at this time. Each loan you apply for will cause a record to be placed on your credit report and this can seem to a new lender that other lenders have been turning you down. This can very easily influence the decision of the new lender and you could find yourself refused for no other reason than those multiple applications on your file.

Therefore the best policy is to look for loan agreements in principle without allowing a full credit search, and only make one real application when you have decided which is best for you. If you are ever refused credit, don't apply again until you have found out why this has happened. Now is the time to check your credit record. You should ask the lender why they have turned you down. Lenders are not legally obliged to tell applicants why they have been turned down but most will.

What lenders look out for. Lenders need to know you can handle credit therefore if you have never borrowed money before you may not be offered the best rate. You may believe you are a worthy customer deserving of the best loan but you can't seem to get it simply because you have no track record.

Once you have shown that you can manage your money responsibly - perhaps with a credit card with a low spending limit and a mobile phone account that you have kept in order, you then start to be in line for the best offers.

It's important not to be overstretched when looking for a new loan (and maybe more important not to appear to be overstretched!). Lenders will always look at your credit record to see what you have outstanding in loans, mortgages etc and they immediately see how you are handling your current payments. If you have idle credit cards then it's a good idea to close those accounts as lenders may get nervous about your spending suddenly getting out of hand if you have instant easy access to more money.

Always explain any deficiencies in your credit file. If you have negative entries in your credit file and maybe are having a bad patch financially then it might be better to take some good advice rather than just go out and borrow more money. Missed repayments on your file will remain there for 3 years whilst any bankruptcies, Court Judgements or IVAs will always stay on record for at least 6 years.

If Special circumstances have affected your performance on a finance agreement in the past then explain these circumstances. For instance if you have been ill or had an accident and this affected your earnings and therefore your ability to pay temporarily you can make a note on your credit file and lenders will certainly consider this when looking at you for a loan

ALWAYS steer clear of any organisation that claims it will repair your credit record - this is simply NOT possible unless a serious mistake has been made, in which case you can easily fix it yourself. Certainly never pay any company for so called "credit repair", any type of debt advice or rescheduling of debts.

If you have problems getting credit, the first step is to review your spending and if you are having problems with your debts then get advice from a debt counselling service .

If your credit rating is poor a quick way to improve it is to register on the electoral roll. Lenders use the electoral roll as a precaution against fraudsters. This helps them to prove who you are and where you live. If you are registered as living elsewhere or not registered at all the lender could ask for further proof of residence or could even just turn you down flat.