Tag Archives: credit check

Buying a new car? 5 key finance tips

Girl in new carLooking for a new car? Whether you’ve gone for a brand new model or a second-hand purchase, you may need to pay for it in stages with a loan or hire purchase. 

With 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.

How much did you spend on your first car?

Many of us will have handed over a few hundred pounds at most just to get our young hands on a car of our own, even if it had seen better days.  Well, things have changed these days, with a generation gap when it comes to car-buying habits.  One in five 18-24 year olds, rather than buying a used and fairly old car, now chooses to lease their car. This is more than double any other age group, with just 5% of 41-45 year olds, and 6% of 46-50 year olds choosing this type of credit.* Continue reading

I keep getting mail for someone who doesn’t live at my address

By Neil Stone, Social Media Executive

man receives bad news in the post.Post in other people’s names
It’s great to come home and find letters waiting for you on your doorstep but when the letters turn out to be for a previous resident or even someone that has never lived at your address it can be frustrating. If it’s a demand for payment it can also be understandably worrying.

The good news is that as long as you have no financial connection to the individual (such as joint account) then their information will not affect your credit report in anyway.

This is because all credit checks are done by name, and not address, so lenders won’t see or use information relating to the other person when checking your report.

The best thing to do is to return the letter unopened to the sender clearly marked as “not at this address”. The lender should then look for their customer elsewhere.

Sadly we can’t prevent a person from using an address to apply for credit, or stop lenders from contacting their customers at an address, but by regularly returning the post the lender will stop trying to contact them. Continue reading

Experian and LBC launch ‘The Money Hour’ radio show

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.

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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Refused credit? A five-point plan of action

denied-creditIt can be galling when you make an unsuccessful credit application, though it’s worth remembering that being refused for credit is not, in itself, hazardous for your credit rating. While your credit report will show that you applied for a credit card (a credit-application footprint will appear on your report for one year), it will not show the outcome of that application.

 

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Why did I fail energy company’s credit check?

Hi James,

I have recently moved into a property with pre-payment meters. I wanted to change over to credit meters like my old flat. However, after a credit check they have informed me I cannot change over as I failed my credit check. I am really confused as I don’t owe any money, never have, and even took out my first credit card last year to help build my credit history up as before this I never had anything on credit. My credit card is paid in full every month.

Could you advise me on this as my gas company has referred me to this site?

Kind regards, Debbie, Kilmarnock

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