Tag Archives: credit history

Graduate debt on the rise: 5 tips for new students

A new world of university life is shortly set to open up for thousands of teenagers.

Most new students realise they’ll leave university with a loan they’ll spend years having to pay back once they’ve made it into the world of work.

But new research shows that new graduates will face average debt levels over a third of the average outstanding mortgage.

By the time they start paying back their loans – maintenance and tuition fees – their debts will be well in excess of £41,000, according to The Money Charity,  which is 35% of the average outstanding mortgage (£117,162).

And how you manage any credit you have now can affect your chance of getting credit in the future.

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Grow your credit score if you’re moving to or from the UK

By Neil Stone, Experian UK Social Support team

If you have recently moved to the UK, or moved back after a spell abroad, you may be wondering what you can do to start to grow your Experian Credit Score. 

You may even be looking to spread your wings and move abroad, and wondering how this will impact your score.

Due to the differences in data protection laws between countries we are some way off having a “global” credit score, we at Experian in the UK only hold information relating to individuals at UK addresses and so moving to or from a new country will mean starting your credit history afresh.

We’ve put together some tips on what you can do to get started on building your credit history.

If you’re…..moving to the UK for the first time
Firstly, you will need to start building your credit history.  For those that have moved from another EU country, then the first step to take would be to register on the electoral roll.

EU citizens can vote in EU elections, and registering at your current address on the voters roll will help when you apply for credit, as lenders often use this to help confirm the ID of their applicant.  You can find out more about registering to vote at www.aboutmyvote.co.uk

If you are not able to register to on the electoral roll, you can add a note to your credit report (once you have obtained a copy of your credit report) to explain this, called a Notice Of Correction.

Many banks now share information relating to current accounts with overdrafts, so speaking to your bank about such an account could be the next step towards building up your credit history.

As your accounts become more established, lenders will be able to use the information to help make their lending decisions.

If you’re…..moving back to the UK
We hold information on closed accounts for six years, so when moving back from a spell abroad there may still be information on your credit report, depending on how long you have been away.

To check for any old information, make sure you supply your old UK address in your application when it asks for a previous address.

If you’re …..moving to another country from the UK ~
As information on your UK credit report is for use within the UK only, we can’t supply your UK credit report to any countries outside of the UK.

If you are moving abroad, you may want to get a copy of your credit report to take with you when you go. This way you would be able to provide a potential lender with your UK credit report yourself should they wish to see it.

The Experian Credit Score is a guide to help you understand your credit report, and how the way you’ve managed the credit you’ve had in the past might affect applications you’re making now. For more information on how to improve your Experian Credit Score, here are our top 5 tips.

How Matt turned his credit rating around

Matt managed to turn his credit rating around a short space of time and now owns his own home – here he tells us how he took control of his credit history to achieve what he wanted.

After running up huge balances on credit cards, mobile phone bills and being hit charges through missing payments, Matt found that it seriously affected his chances of getting a first mortgage.

Checking his Experian Credit Report and Score allowed him to see how he could sort out his finances and ultimately help him get that first home.

Now much more money-savvy, he works for TopCashback and is dedicated to helping people get deals that could help them save money.

You can also check out Becci’s story of how she is using the Experian Credit Report and Score to help her save towards a mortgage here.

Why it’s good to understand your credit history

Getting a good understanding of the factors that do and don’t affect credit ratings can help you both now, and in the future.

Experian research found that seven out of 10 of Britons (71%) believe they have a good or excellent history of managing credit*.

But two thirds of these (66%), equivalent to almost half the UK population** have never actually checked their credit report or score – and should their credit rating be damaged, it could get in the way of their chances of getting the most suitable deals, and at the best rates.

So that’s why we’ve now launched a series of online guides to help take some of the mystery out of the credit referencing process, and help people take control of their finances.

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First-time buyers: check your credit history

Could your credit history prevent you from getting a mortgage?

Experian research suggests that more than a quarter of people in the UK looking to buy their first home before 2016 –  around 1.81 million people  – have missed credit repayments, defaulted accounts and CCJs currently listed on their credit report. And all of these could prevent them from securing a mortgage.

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5 ways you could build up a credit history

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.

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Use your credit score to plan your financial future

Your credit score is not set in stone - you can change it

Your credit score is not set in stone – you can change it

Everyone has a credit report, and by definition a credit score too. And when you apply for new credit, most lenders want to make sure you’re able to pay it back before they commit to giving you credit.

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Your credit report can help banish debt worries

Let your credit report help you beat debt worries

Let your credit report help you beat debt worries

Money worries can keep us awake at night. Research by the Debt Advisory Centre shows that one in eight UK adults worry constantly about what they owe and a further one in five are often concerned about their debts.

Moreover, more than half those with money worries said their financial situation gives them sleepless nights. Many also thought the stress has been affecting their relationships and their health. Just 6.5 per cent of borrowers were unconcerned about what they owed.

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How being on the electoral roll can help your credit rating

It’s important that your credit report includes your electoral roll details because lenders use this information to help confirm your name, address and residential history.

Not being registered could therefore cause a delay when you apply for credit, while the lenders confirm your details some other way. With some lenders it can even hurt your credit score, and some applications may even be refused.

Banks and building societies usually need to know that the information about you is up to date before they are willing to offer a mortgage, a loan or any other form of financial account. Maintaining your presence on the electoral roll is therefore particularly important.

If you are unsure whether you are registered or not, or would like to register for the first time, you could visit the About My Vote website, type in your home postcode and complete your local authority’s form.