By: Chris Haycock | Posted on: 19 June 2015

REVEALED: The "SHOCKING TRUTH!"

What are banks and credit score agencies doing to stop YOU getting credit?

If you're fed up with being declined when applying for loans, credit cards or mortgages, this report will reveal the shocking truths and secrets about Credit Scoring.

Published by Maria Forte, an expert who worked for 20 years in the Financial Industry in London, the report can help you to skyrocket your credit score.

Bust the myths and get the FACTS now:

Click Here!

Getting credit is something we all have to do it sooner or later, whether it's securing a new mortgage on your first home, getting a credit card so you can splash out on that dream holiday, or buying that flash new car on finance.

However, obtaining credit is something that can be fraught with problems. Since the recession lenders have become more strict, and require a higher credit rating/score than ever before. The days of easy credit is (fortunately) over.

Lenders will often look at your current and past situation, and examine many aspects - some that we are all unaware of - in order to decide whether to give you that line of credit. These lenders often use a credit scoring service to determine how much risk you are. It sounds unfair but think of the detrimental effect it can have on their own business. They are, after all, just looking out for their own best interest.

After the lender has checked your credit rating, they will use the score to determine whether you can get access to their line of credit, as well as determining how much you will be able to borrow, and sometimes how much interest they will charge you. If you have a low score, they may decide to charge more interest to cover their risk.

There are ways that you can improve your potential credit score by following some simple advice and tips. Whether you haven't established yourself as a credit-worthy individual or are having some problems with a low credit score, applying some of these tips will help you get back on track.

1. Get on the electoral register

This is primarily used by lenders to see if you are actually a resident at the address you have stated on the credit application form. This is done to protect them against fraudulent credit applications.

If you are not on the electoral register you can do so by visiting About My Vote.

2. Check your credit report

Lenders won't necessarily have the full information about who you are and what financial risk you pose, so they typically use one (or more) of three main credit agencies who keep details of the state of your financial affairs.

Luckily, you too can get access to your credit report to see what the lender sees. You can make entries onto your report, correct mistakes and see how your score may affect your credit application.

There are three main credit agencies:

• Experian
• Equifax
• CallCredit

You will typically pay a small fee to access your report, and a monthly fee should you wish to keep track on an ongoing basis.

Here are several things to consider once you have created and accessed your account:

• Ensure all details are 100% accurate and up-to-date.
• Sever any links that you may have with ex-partners, which could affect your rating if they have a poor credit rating. Ask to complete a disassociation form.
• Add notes that explain about previous credit problems that you may have had, which are sometimes taken into consideration if something is not your fault.
• Ensure county court judgments (CCJ's) are removed after six years.
• File a correction request for any errors that you notice.
• Look out for suspicious activity, which could suggest identity fraud.

3. Pay off or close unused credit accounts

Lenders will often examine the credit limits that are available to you, not just the total amount that you owe to lenders.

4. Keep balances low

Ensure that any credit card balances are kept to less than 25 per cent of your total credit limit. This sends an indication to the potential lender that due to your low usage you may be a low risk candidate, which will increase your chance of being accepted.

5. Look out for identity fraud

Always use the credit agency report to look out for any suspicious activity on your file, such as the creation of new accounts or an increase in credit applications, which may suggest that you have been a victim of identity fraud.

6. Ditch old credit cards

If you have old credit cards sitting in your wallet or purse that you no longer use, ditch them. Stagnant credit accounts will still appear as lines of credit on your credit report, which will play a part in the final score. Once you've closed down the accounts check your credit report to ensure that they have been removed from your file.

7. Boost your credit reputation

If you don't already have a credit card it may be in your best interest to aquire one, if you are making a big purchase, such as a mortgage. At least six months prior to your 'big purchase' get yourself a credit card - but with one caveat - spend small amounts and make sure you pay off the balance each month to avoid interest. Do this for a minimum of six months to improve your credit reputation.

8. Spread your credit applications

Applying for lots of lines of credit in a short amount of time is a sign of desperation, and a warning sign for potential lenders. Spread any credit applications over as much time as you can to avoid the red flags.

9. Ask for a quotation search

Ask a potential lender to perform a 'quotation search' rather than a 'credit search', which will allow you to see whether you could be accepted for the credit before it leaves a mark on your file.

10. Fill in forms correctly

Used fixed land lines instead of mobile numbers, which lenders prefer for obvious reasons. A fixed landline is attached to your address which can be cross-referenced.

When applying for credit, always complete forms truthfully and honestly. It is relatively easy for lenders to spot any signs of dishonesty or fraudulent activity, and this can have a huge detrimental affect on your credit score if you attempt to supply misinformation on the forms.

Feel free to add a note on the forms that explain any potential issues that you may have had in the past, if you think they are relevant. Should a credit application be referred to a human, they may take this into consideration when deciding whether to give you the line of credit.

11. Never miss a mortgage payment

This is a biggie. Never miss a mortgage repayment without prior arrangement with your mortgage lender. Mortgage repayments are more important than any other line of credit. If you are having problems (or think you will be) paying off your mortgage, then speak to your lender. They will be able to help and advise you to avoid getting into trouble.

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