First Time Credit Application

Credit, in its simplest form, is borrowing money. As a customer you are lent this credit and make repayments over an agreed period of time.  Credit comes in many forms – secured loans, unsecured loans, mortgages, credit cards and many more.

But, Credit doesn’t have to be in the form of a loan, a phone contract is a form of credit, and so is a gym membership.

How does a company decide if you are credit worthy?

Primarily a company will check whether you are safe to lend to based on your credit rating. There has been plenty in the news about how people with bad credit are unable to get mortgages and other forms of finance. It is the same for someone with no credit rating.

Many people who have never been in debt and pay off all purchases up front will have no (or a thin) credit rating. Younger people who are applying for the first time may also find this a problem because they have no record of repayment (your credit rating). So how do you get yourself a credit rating when new to credit? You can get a Free Credit Report* from Credit Angel.


*A Monthly fee of £14.99 applies after your free trial. You may cancel anytime during your 30 days free trial without charge.

There are a number of things you can do to improve your chances of being accepted.

1. Having a current account that you manage well, this includes not going into an unarranged overdraft. This makes you appear unable to manage your money properly

2. Pay any bills you have by direct debit. Ensuring you are paying your bills on time using

3. Moving jobs or moving house can affect your credit rating. Lenders like stability and reliability. As much as possible try stay in a job or house for as long as possible.

4. A simple task is getting yourself on the electoral register. This tells the government where it is that you live. To do this, visit your local councils’ website and there will be information there.


If you have no or a poor credit rating is a guarantor loan. Instead of the lender judging the credibility of the loanee, it checks the credit report of the guarantor. The Guarantor must agree to be one before you make the application. UK Loans offers a Guarantor Smart Search and Comparison table.

If you already have a current account then you can ask your bank for an overdraft. Usually this will only be for a small amount, but, used wisely the bank can increase this for you over time. While this may seem like a good option, if you go overdrawn on your overdraft the charges can be extortionate.

Credit Score building Credit Cards are available from a number of companies. They are designed specifically to build a person’s credit rating. As such, APR is very high so paying back on time is paramount.

Before taking out any form of credit always make sure you can make the repayments. If you find yourself getting into trouble with debt or want advice from an expert please visit the following website.

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