Real Estate - Real Estate Investment

Every
time you apply for a mortgage, loan, credit card or even a store card
the company issuing you with credit will need to assess your
credit-worthiness before they accept your application. Usually, this
is done instantaneously by electronic means. The credit issuer checks
your credit rating against their loan criteria. If you meet or exceed
their criteria your application for credit is accepted.

Credit
checks in the UK are made mainly with two credit agencies - Experian
and Equifax. Between them they hold your entire credit history on
file. They reveal to anyone who looks at your record what loans you
have now or have held in the past, and how efficient you were at
repaying those loans. Your history is credit rating, and it is this
rating that loan companies look at when assessing any loan
applications that you make.

Should
you have suffered a property repossession you can be sure that this
fact will be clearly noted on your credit file. A County Court
Judgement (CCJ) ordering a property repossession has a huge negative
impact on your credit rating. Even if you manage to stop the mortgage
repossession before it gets to a court hearing, the fact that you
have had mortgage arrears with your house loan company will count
against you, and will be recorded on your file. Together, CCJs and
arrears can make it very difficult for you to obtain credit in the
future for a period of about 6 years.

By
opting to stop
property repossession well ahead of falling into arrears you can
maintain a healthy credit score. Therefore you should take action at
the first sign of financial trouble.