Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk. We are a broker not a lender.

Aug 14, 2019

Understanding Your Credit Score

Also known as your credit rating, a credit score is one of the most powerful numbers that will ever be associated with your name. While it can be challenging, even frustrating, to maintain a high credit rating through life, the benefits of doing so are enormous. On the flipside of that, a low credit rating can also make it extremely difficult to get to where you need to be. This is one of the reasons why payday loans and installment loans from Cash Kitty are so popular. Unlike Cash Kitty, or similar lenders, the availability of most loans is going to be dependent upon your credit rating.

Worse yet, different lenders can interpret your rating differently. This can make it a little challenging to understand exactly where you stand.

While Cash Kitty may not care about your credit score, it is still a good idea to maintain the highest possible rating. Let’s take a look at the benefits of a good credit rating, as well as what you can do to raise that level to a more appealing (to lenders) level.

The Basics And Benefits Of Good Credit Scores

A credit rating is derived from a credit report. Such a report will contain the various elements that define your financial profile. This rating is designed to tell lenders whether or not you are a good credit risk. The higher your rating, the less likely it is that you will be seen as such a thing. This is why individuals with low scores often struggle to get the funding or emergency money they need. One of the most frustrating things about a credit score is the fact that it doesn’t take very much for the rating to take a hit.

Even missing something as trivial as a single credit card payment can cause problems. While it would be nice to live in a world where such a standing wasn’t so precarious, this is unfortunately not the case. There are a number of impressive benefits to having a good rating:

  • • Low interest rates: Applying for a credit card? Your credit rating will determine whether or not you get a low interest rate.
  • • Better approval odds: Simply in terms of getting approved for a great loan or card, you need a strong score.
  • • Higher limits: You can also receive a higher line of credit with a good credit score.
  • • Renting? Potential renters with good credit scores tend to fare better while searching and/or negotiating.
  • • No security deposit on your cell contract: Good credit also means getting a new cell phone contract with little-or-nothing in the way of a security deposit.

How To Improve Your Credit Score

At Cash Kitty, we want you to feel good about your credit. If that is indeed the case, here are some quick tips to improve your credit score:

  • • Make sure you’ve been registered with the electoral roll.
  • • Look for mistakes with your file.
  • • Pay bills on time.
  • • Look for fraudulent activities.
  • • Make sure you aren’t linked to someone.

These are easy, proven methods to get your credit back on track.

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