Not registering to Vote could affect your ability to be a approved for a loan
A recent survey by uSwitch has shown that 25% of 18 – 24 year olds are completely unaware that not registering to vote can affect their ability to be approved for a loan, mobile contract or a mortgage. A quarter of the 2000 young people surveyed had no idea that not being on the electoral roll had an impact on their credit file.
Lenders look at an applicant’s credit file to determine whether or not they are a good option to lend to and if the credit score is low they are unlikely to approve the loan. However some lenders will consider a loan application from those with a low credit score, but this will be at a cost to the borrower, in terms of interest rates and will cost you more in the long run.
In order to get a good deal on a loan it is imperative that you take all of the steps to ensure that your credit score is as good as it can be.
This includes registering to vote and ensuring that you do not miss repayments on current debts such as credit cards or loans. If you are late or miss any repayments on current debts, this will also have a negative impact on your credit score.
You also have to ensure that you do not apply for credit too often, this leaves a footprint on your credit file and can show lenders that you are desperate for finance and therefore likely to hit debt problems.
To view your credit file, visit Experian or Equifax and sign up. Viewing and understanding your credit file and score can help you to look at ways to get better finance deals, if left you could find yourself unable to get a mobile phone contract or a mortgage in the future.