It needn’t be so hard to get approved for credit. It’s more of a matter of understanding your own score and being mindful of where you may have adversely impacted your own credit history. Like anything, this is simply about knowing where to look and what to look out for. So what should you be doing? Well… to start with… you need a credit history, because without one… you wont be approved for credit. Huh!? That’s a bit strange isn’t it? You can’t get credit until until you have credit…? Yes–that’s right. It’s not the most intuitive analogy but it’s true. Let’s look at a scenario: Imagine you’ve had several credit cards for some years. Now let’s say that while you have have been using them… your repaymentshave been inconsistent. Some months you’ve paid on time, other months you’ve paid late, and some payments have been missed altogether. You then go to apply for a mortgage; the lending company performs its due diligence, which includes completing a credit history check. Your result comes back below the lender’s acceptable standard, due to your poorly maintained credit history. A couple things can happen at this point. 1) The lender can and probably will reject your request for a mortgage. 2) They may offer you some funds… but if they do, they’re likely to be subject to an increased interest rate and a reduction in the borrowing amount. This result is directly related to the way you have managed your previous credit commitments. One more scenario for good measure: You have a few credit cards and a car finance agreement. you’ve always kept up with payments. You’ve recently moved into a new rented house… but now you want to apply for a mortgage. The lender, as per the previous scenarios, does their checks. Your credit rating comes back rejected.What a shock! What happened? Well… it turns out that the last tenant in the property you’re living in built up lots of unpaid debt. Now the house is associated with bad debt, which affects any and all occupants! This is unfair but it happens. Don’t worry there are ways around it, which we will explain later.