It is advisable to maintain a good credit report (– ie. a record of your borrowings and repayments to date), because you may wish to make an application for a loan in the future. Lenders will only agree to lend you money if they are satisfied you are in control of your finances, and are likely to make repayments on time.
Here are tips on how to maintain a good credit report:
- Obviously you need to always pay your bills and make repayments on cards, loans and mortgages on time.
- Make sure that every entry is correct. Lenders have been known to reject an application for a loan due to clerical errors in credit reports.
If you have any concerns about repaying existing lenders, ask them whether you can negotiate a schedule for repayment, or arrange a temporary payment holiday.