We get this a lot.
People apply for a loan and then get surprised when they are declined because they don't believe they have any poor credit on their file. However, a lot of people are forgetting a really obvious and really common issue...Late payments or arrears on a mobile phone.
It's true.
You may think that missing a few payments on your monthly mobile phone contract won't matter but the reality is that it will. It is still a credit agreement and all of the mobile phone networks report their customers payment history to the credit reference agencies, so if you are late or in arrears, this will be reported on your credit file and of course, when you apply for a loan, you will be credit searched and this adverse credit information will appear and may stop you getting approved for a loan.
So if you take just one bit of information from us, make sure you stay up to date with all of your existing credit repayments, otherwise it could affect you getting the loan you need, if if a new loan would consolidate some existing debts and actually make you better off at the end of each month.
People apply for a loan and then get surprised when they are declined because they don't believe they have any poor credit on their file. However, a lot of people are forgetting a really obvious and really common issue...Late payments or arrears on a mobile phone.
It's true.
You may think that missing a few payments on your monthly mobile phone contract won't matter but the reality is that it will. It is still a credit agreement and all of the mobile phone networks report their customers payment history to the credit reference agencies, so if you are late or in arrears, this will be reported on your credit file and of course, when you apply for a loan, you will be credit searched and this adverse credit information will appear and may stop you getting approved for a loan.
So if you take just one bit of information from us, make sure you stay up to date with all of your existing credit repayments, otherwise it could affect you getting the loan you need, if if a new loan would consolidate some existing debts and actually make you better off at the end of each month.