Your credit history report is a major factor on which lenders base their decisions as to whether or not to approve your loan applications. It should therefore be a primary concern for anyone with a bad credit rating to ensure that they take steps to make improvements to their report. This will help to facilitate the approval of future applications.

Apart from deciding whether a loan will be granted, a lending institution may also check your credit score in order to help them decide how much to lend you and over what period. These factors will influence the level of your monthly repayments. A bad credit score will make it difficult for you to get approval. Lenders base these scores on their own set criteria, one of which is usually your credit report.

However, there are effective steps that you can take in order to improve your credit score. The first, and probably the most important step, is to make a thorough review of your report to ensure that the information contained on it is accurate and timely. To do this, you will need to ask the lender that declined you whether they based their decision on your report.

If the lender based their decision on your report you will need to ask which agency supplied the report as there are a few different ones. Once you know the agency, you can apply for a copy of your report and they are legally obliged to send this to you. However, they may make a small administration charge for doing so.

Keeping your credit history report up to date and accurate may work to your advantage as it will reflect your current situation to lending institutions. Not only can you ask for inaccurate information to be removed but also information that is out of date. For example, bankruptcies and IVAs should be removed from your report after six years.

One way in which you can start to repair your report is by successfully obtaining finance. You may ordinarily find it difficult to obtain personal loans with bad credit but there are some providers that specialise in bad credit loans. Once you have successfully obtained finance you also need to make sure that you keep up to date with the payments.

Lending institutions will be looking for evidence of your ability to repay loans on time and this is likely to affect any future decisions as to whether to grant finance. It is therefore important not to get behind with the repayments on bad credit score loans as any defaults or legal action to recover arrears will adversely affect your report.

If you make many applications for finance this will also be reflected on your report because every time a lender performs a credit check, it is noted. If you are making several applications in close duration it may show signs that you are either taking on too many financial commitments or that your applications are being repeatedly declined.

Back on Track Loans specialises in lending to people with a bad credit rating. Furthermore, because we have more than 250 financial products available, we should be able to help you find a low cost loan. We can also help you if you are experiencing problems because of your debts.