The most important factor that plays a deciding role in granting you a loan is of course your credit rating. A good credit score is a magic mantra in the loan market. It can help you get a low APR (Annual Percentage Rate) with negotiable payback terms. In other words, a customer with a good credit history is a safe bet for the lender as he is sure to get his money back on time. Which makes us ask this question - is there anything like a fixed credit score?

The general consensus is that there is no such thing as a fixed credit score. As of now, it’s the lenders prerogative. If you can measure up to the lenders expectation of a ‘credit happy’ customer, then you may get all the benefits associated with a ‘prime customer’. The recent figures of application rejection have reached alarming proportions. A recent research from Moneyexpert.com reveals that over 1.30 million people have had application rejections in the last six months. This makes it a staggering 320 application rejection per hour.

Generally, an unsecured loan application faces the chance of getting rejected at the verification stage as there is no collateral attached to this particular loan type. This means that the lender has no guarantee that his principal amount would be recoverable within the stipulated loan cycle. A good credit score has more relevance if borrowers are thinking of taking out an unsecured loan. This is because there is no question of collateral involved in this transaction. The only way to check the loan seeker’s credit worthiness is by his credit score. Although, consumers take care not to spoil their credit score, sometimes missed payments happen due to lack of understanding of the lender’s terms and conditions.

In fact, the general trend shows that people who have taken out unsecured loan deals are more prone to making such errors because their homes are not mortgaged against the loan package. They feel that a small missed payment will not affect their credit scores. But, it has been noticed that even those customers having good intentions of paying back credit on time sometimes default on the monthly payments.

To overcome this hurdle, APACS, a UK payment association site has unveiled a credit card statement guide which will provide valuable tips to customers to help them understand the financial terminology used in their statements like ‘payment date’, ‘APR’ and ‘allocation of payments’. Sandra Quinn, director of communications at APACS, feels that with this advice guide, consumers will be better equipped to understand the value of frequent check of credit statements and making payments on unsecured loan deals on time.