Understanding the Credit Report

Credit reports differ from individual to individual. However, it is these reports that creditors use to assess whether an individual is credit worthy or not. While others have a blemished credit rating, others have been able to maintain a good credit record. How is it that a bad credit rating appears?


It is as a result of bad credit behavior that one gets a poor credit rating. Bad credit behavior may come about intentionally or unintentionally. Failure to pay for your credit as expected leads to poor credit rating. With each late or missed payment, your creditor is forced to report the lapse to the credit bureau agency. A series of late or missed payments eventually lead to a poor record of payment. While others may miss making timely payments intentionally, others are victims of their circumstances. It could be that one fell sick and could not operate their businesses as usual, one may have been terminated from work and has no pay to service the loan, or one may have been declared disabled and unable to earn a living anymore. The credit agencies do not keep a record as to why the loans were not repaid as agreed thus not giving poor credit with exemptions. A poor record remains a poor record regardless of its trigger.

Good credit behavior is not always a guarantee that you will have a good credit rating. Some may easily reason that just because they never borrowed a loan in their life time, then they have a good credit rating. Well, this is not true. For the fact that you have never borrowed means that your have a non existent credit history. This does not make matters good for you. When you are seeking to find a loan, you will find it difficult to get a loan. Even if you can afford to pay back a big loan amount, the creditor can easily decline the loan offer since you have no borrowing record from before.

If you have borrowed before but are not a frequent borrower, you are also not in a good place either. You may have had one or two debts but they were spaced and you may have taken up small amounts. When you will be in need of a huge loan, the lender will not be ready to risk giving you the huge amounts. Lenders have a graduation curve that they would like to see their clients use. They may not readily let you graduate from a baby loan to a huge long term loan since this may not be an offer that you are prepared for.

If you have a poor credit record, lenders can easily decline your loan. There are online loan offers that give credits to individuals with a bad credit record. However, these are usually costly and may need your use of guarantors who have a good credit rating or collateral for the loan. If you are able to provide the needed, they can provide small loan amounts depending on your financial disposition letting you pay for the loan as you repair your tainted credit history.

Credit report with score

How You Can Cut Back on Your Spending to Save More

UK residents who are credit card holders usually spend huge amounts of money on their day to day life in comparison with the money they earn. This keeps them in huge debts that keep running a higher figure year after year. With a growing population and debts running higher, there is a need for individuals to learn how they can cut back on their spending in order to make higher returns. Instead of holding on to cards that attract high interest rates of up to 17% why not take the easiest option out? Cut back on your spending and learn to save for yourself some money.


Here are some of the ways through which you can cut back on your expenses:

  1. Clear off any expensive credit cards that you are holding on to. In as much as they offer a more convenient ways of paying for goods, remember that they attract interest. You in event pay more than what you would have paid for the goods you purchased in cash. Learn to save money and use your cash to pay for purchases. If you really need to use cards, then why not acquire a prepaid debit card? It will help you spend within your limits.
  2. Fuels costs are high and they keep rising. You need to cut back on fuel costs. The cost of running two or three family cars at the same time is pretty expensive. Why not learn to share a car as a family. If you are going the same direction, you can drive out as a family with each member in the car dropped off at their convenient place. The less the cars used, the more the funds will be saved on fuel. Use multiple cars only when necessary.
  3. Cut on the home phone bills by selecting the cheapest offers in home phones. While you may need the telephone, television, and internet access in the home. Be keen as to the service provider you select and the package you take up. You do not need a service that will let you pay for more considering the fact that you spend less time active at home but a lot more time active outside the home. Be wise to choose an alternative that will let you pay for what you really need and use.
  4. Make a shopping list for every month expenses. This helps to control impulse buying and lets you know the amount you will need for the month on household items as well as groceries. A monthly shopping list will help you allocate the correct amounts for every family need and set aside some money for savings. A shopping list can help you kick out practices of impulse buying.
  5. Consider visiting the market. You need to get your groceries at a good price. Forget about going to stores that have taken up groceries from the market and hiked the prices. Go to the market yourself and collect what you need for a week and keep it refrigerated.
  6. Do not always run for designer brands. Many love to get designer items in an attempt to emulate celebrities. Do not forget that these people are given the designer items for free but do not go buying them. You end up losing more running for designer items while those you are emulating do not spend a dime to look like they do.
  7. Try the DIY techniques. There are many things that you can do by yourself. Instead of calling for technicians to carry out simple repairs which will cost you more, do the repair by yourself if you are sure on what the problem is. You can always find tips on how to do this by yourself online.
  8.  Learn to put limits and how to say no. Do not be tempted to have all the fun in the world just because you can afford it or you have a credit card with huge maximum limits. Set aside a budget and when you have reached the limits, contain yourself. You don’t always have to go for evening drinking sessions and countless movies just because you will be bored at home. Entertainment has its place and this does not mean going out all the time. You can as well have wholesome self entertainment at home.
  9. Before making a purchase, ask yourself; do I really need this? You may find that you are making numerous purchases that you do not really need in your life. Cutting back on the purchases means that you get to have extra funds left back for saving. If you were to use your credit card, you will have less debt thus lower interests to pay.