A credit check isn’t always bad news. When considering a loan application, responsible lenders need to do a credit check. But that doesn’t necessarily mean that you will always be rejected for a loan.
The Credit Advice Bureau provides a good explanation of what a credit report is made up of:
“Your credit record is a summary of your history with credit, debt, and repayment. If you have had unpaid debts or been insolvent, this will be recorded, and it will affect your credit record. Overdue or unpaid fines and reparation won't show up on your credit report but can be included when a credit check is done.
Your credit record can include your repayment history. This means that whether or not you meet, or miss, your monthly payments on your credit card, mortgage or electricity or phone account, can end up on credit reporters’ databases – and be on your credit report.”
When businesses decide whether to lend you money, they look at your credit report and give it a score. A credit rating is used to assess if you are a good person to loan money to. Credit ratings are “scored” from a variety of questions a lender asks regarding your financial history, current assets and liabilities. This information helps the lender to judge whether you will be able to pay off the loan. A bad credit rating indicates a higher risk meaning that a lender would either charge a higher interest rate or decline the loan.
As part of our assessment we do a soft credit check, which means checking things like your credit rating. But there’s no credit check fee. And depending on the circumstances, we may still be able to help you even if there’s a default on your credit file – it all depends on the reason and timing of the mark. However, sometimes there are cases when applications are declined – but we can explain these reasons to you.
Credit history is only part of the application process, as we also consider other information.
There’s no harm in applying with Moola to see whether we can assist you in getting a loan.