How your credit report can help you Budget

So long, old pound coins..

So long, old pound coins..

So the Budget is here at last, and what does have in store? We’ve seen announcements on taxes, childcare, fuel prices, and even the arrival of a brand new £1 coin. And Mr Osborne has suggested that “If you’re a maker, a doer or a saver: this Budget is for you.”

Most of us will be affected in some way by the changes that have been announced, but how can we do our own Budget to help us understand, protect and take steps to improve our own finances?

The headlines were clear: personal allowances raised to £10,500 in 2015, and the 40p rate tax threshold now up from £41,450 to £41,865 next month, and then by a further 1% to £42,285 next year. And the tax breaks applied to childcare provision for the under-12s, from autumn 2015, could help many working parents. Not to mention beer duty cut by one pence, and a freeze on fuel tax duty..

Help To Buy is being extended to 2020, and according to the Chancellor 200,000 new ‘family homes’ are set to be built.  However, while interest rates remain low, the target for many is to get the best possible mortgage deal before rates rise, and variable rates rise along with them.

Your credit rating plays a major role in the decisions lenders make when you apply for all kinds of credit: whether it’s a mortgage, a credit card, car finance loans or mobile phone contracts.

So understanding your credit report, what’s on it, and the steps you can take to improve it, can help you put yourself in a stronger position when it comes to applying for the credit you want or need. The data and information held on your credit report summarises your credit history, so it’s in your interests to ensure that it is accurate, up-to-date, and reflects your current circumstances.  Making little changes to improve your credit report can make a big difference; not only to getting credit, but also to the interest rates you could be charged.

Your credit report is of course only one part of your application –  lenders also use the information provided on your application form you use, and information that they already hold on you (for example, if you’re applying through your bank).

Your Experian Credit Score is a guide that will help you understand how your credit history is likely to be seen by lenders. It can show you the way that you’ve managed credit in the past can affect future credit applications, and for you to monitor your progress as you get your finances in order before you apply.

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