Many of my clients say to me, ‘But I couldn’t do that, my credit record is terrible’. I ask them ‘how do you know?’ and they always answer that they have been turned down for something in the recent past. Or they have a county court judgement against them that they either settled years ago or are still paying off.
The same day that I was turned down for a credit card with a £1000 limit was the day I got the offer letter from my bank regarding the £300,000 loan to buy my hotel.
You just don’t know what the criteria are, for each lender. No two are the same. They have certain things in common that they look for and I’ll go into those in more detail tomorrow.
Did you know that most people are turned down for credit because they are not ….
Did you know that most people are turned down for credit because they are not listed on the electoral register? You can check whether you are listed at your local town hall or the equivalent in your country.
Don’t guess and live in fear. Find out what your credit record is saying about you right now. There are two main credit agencies that hold details on people, accessed by lenders and this goes for the USA as well as the UK.
There is Experian and Equifax and you can obtain a copy of your current credit record for as little as £2.00 – I get mine sent to me, automatically, quarterly.
They will send you a little booklet that explains your record, step by step, and if even I (with my attention span of a gnat!) can read one, then you certainly can!
It’s not so scary if you know what they are saying about you, and you have remedies if they are holding incorrect information about you. Knowledge is power remember.
In the current climate lots of people with exemplary credit ratings are STILL being refused mortgages, so don’t’ worry too much if this has happened to you.
It can’t last, banks need to lend in order to make profits, so why not, in the meantime, investigate one of the other methods of buying property (as covered in the Property Chapter).
Knowledge is power…
Look on the internet for www.experian.co.uk or .com for the USA. You can actually have a continuous monitoring service and it will alert you by email or SMS if anything changes.
Then visit www.equifax.co.uk or .com for the USA, they have a quarterly update service. Both of these services cost just a few pounds/dollars a quarter.
This extract was taken from the “Debt-Busting Chapter” of
Nicola’s book “The Money Gym : Wealth Building Workout”
The Money Gym Wealth Building Workout
By Nicola Cairncross
Includes a forward by C4’s Secret Millionaire Gill Fielding
Gill Says: “This book is a template for anyone who wants to create wealth. It will tell you the path to take and what do do… There is no better teacher and mentor than Nicola.”