One of the key things to do when preparing for a mortgage application is tidying up your financial situation. Your mortgage is likely to be the biggest financial commitment you’re ever going to make – so it’s going to be important to make sure that you find the best deal for your circumstances.
Lenders like to see some evidence that you’ve been a reliable manager of credit in the past – that you’ve got a record of taking credit and paying it back under the terms agreed.
But what if you don’t have a much of a credit history? You would need to build up a credit profile to support future credit applications.
New car sales in the UK are booming – and September marks the start of more new vehicles coming onto our roads, as new licence plates are issued.
Car finance is one of the most common examples of how we pay for the kind of ‘large ticket’ items that we just can’t afford in full, or it may not be practical or advisable to put on a credit card.
Whether it’s a brand new model or a second-hand purchase, we may need to pay for it in stages using a loan or hire purchase. With either of these types of finance, a good credit rating can be the difference between getting a good interest rate or not, or sometimes getting any deal at all.
Here’s Anthony Hill from broadbandchoices.co.uk with some tips on buying mobile phones for children:
At what age should you buy your child a mobile phone? It’s probably not a question your parents had to consider. However, a recent study by broadbandchoices.co.uk, where you can now compare mobile phones as well as TV and internet deals, found 90% of kids aged 8-14 have one and, on average, are just 10 when they get their first handset.
Most students probably realise they’re going to leave their red-brick walls of learning with a loan they’ll sooner or later have to pay back, once they’ve made it into the world of work.
While many of today’s children benefit from financial education in schools, the current group of university entrants may not be as prepared financially – not least to ensure their debt doesn’t hinder them when they enter the graduate world.
That’s why yesterday (1 Sep) on LBC’s Money Hour show, we joined hosts Clive Bull and Sarah Willingham to discuss how students can build and maintain a decent long-term credit rating.
Starting on 1st September, we’re launching a brand new radio show “The Money Hour” in association with LBC. Co-hosted by Clive Bull and Sarah Willingham, it’ll be from 9 to 10pm on Monday nights. Experian’s resident money expert and Head of Consumer Affairs, James Jones, and experts from other organisations will join the presenters discussing issues such as mortgages and car loans, giving help and advice on credit matters and answering listeners’ questions. I spoke to James about the upcoming launch of the show, and here’s what he said.
What’s in the show? We’ll be discussing key issues such as qualifying for a mortgage, getting the best deals & avoiding credit refusal, and we’ll share our top tips for building a great credit rating!
What are the biggest myths surrounding credit ratings and credit scores? There are so many myths which are really frustrating for us and sometimes damaging to the public. For example, many people believe checking their own credit report will damage their credit rating. Of course this is totally false and if there’s any impact it’s likely to be positive as you may identity information or behaviour you can change to improve your credit rating in the future. Another example is ‘blacklisted addresses’, which simply don’t exist. But some people believe they do and make bad decisions about their finances as a result.
What should someone do if they get refused credit? We should all see credit refusal – and we all get turned down from time to time! – as an opportunity. Push the lender for an overall reason – and only they can tell you this as only they know! – and order your credit report from the credit reference agency the lender consulted and check through the information carefully.
The top three reasons why checking your credit report can only be a good thing?
1) For a start, checking your own report from time to time compliments the work the credit reference agencies do to try to make sure you’re the information is accurate and up to date. And if you do spot something that needs changing you can alert the agency which will then launch an investigation on your behalf.
2) By checking your report you may identify things you could do to improve your credit rating, for example by registering on the electoral roll.
3) Many victims of identity fraud discover the crime when they check their credit report, and in most cases the early you spot fraud the easier and quicker it is to sort out.
——————— The Money Hour - every Monday from 9-10pm on LBC. A podcast link will be available here on the Experian Experts blog each Tuesday following the show.
Let’s face it, most of us want to try to make the best use of what we have coming in by reducing what we have going out.
It doesn’t have to be formally ‘saving money’, but sometimes just making small changes to the things we do on a regular basis can help cut costs.
Just what is a credit score? And what can it do for you? Melvin, a Customer Services Executive at Experian, explains here what a credit score is, how it is calculated using information in your credit report, and how a higher credit score could mean you could get better rates on financial products.
He also talks about what you can find on your credit report, what kind of things lenders use it for, and what other factors within your credit application can affect the decisions lenders make.
Did you know we have an Experian YouTube channel? It’s a selection of videos with tips on how to get and manage credit successfully, how to understand your credit report, as well as how to protect against the threat of Identity theft.
This short video below helps to explain all about the Experian credit report, and what is on it, with links to several other videos that go into more detail. You can find more videos about understanding your credit report here.
This one here features CreditExpert customers talking about how the service has helped them.
Finally this one below explains what identity theft is, how to protect yourself against it, and how CreditExpert can help you spot and stop it before any damage has been done. You can find more videos on this subject here.
You can find more of our videos at https://www.youtube.com/user/CreditExpertUK
Really? Well, research from Experian has shown that 3 in 4 of women (75%) rate financial prudence more attractive than appearance, education or background, and on a par with intelligence (74%).