Here are some questions I have seen recently about how long it takes to improve your credit score for a mortgage: I was foolish with credit cards for years but now I am determined to buy a house - how long will this take? My credit score is dreadful. My new partner has a good credit record and we want to get a mortgage. I have a poor credit rating but I have now inherited a deposit. How … [Read more...]
Other Money
I write about a lot of Personal Finance that isn't directly about problem debts. Those articles are gathered here.
Spending - reducing or controlling it is usually essential if you want to reduce your debts. So Budgeting is another big topic.
Your grandparents used a pen and paper, but now we have Apps to make all this easier.
Mortgages - sometimes thought of as the only good sort of debt!
Credit ratings - important if you have too much debt or very little!
How much will my credit score change if … ?
How much will my credit rating go up or down? That is a very common question. But it's often tricky to answer! This article has some guideline numbers from Experian that may help. These are only indications - your credit score may not go up or down by this much. They assume nothing else has changed on your record. They also apply to single issues. If you have two defaults already, getting … [Read more...]
Buying too much online? 5 ways to cut back
A few taps on your mobile and that handbag, those kids' clothes or this kitchen gadget is on its way to you. Very convenient with busy lives and little time to go to the shops. Or when the shops are shut because of lockdown! But when money is tight or you want to save for something important, or you are just bored with being at home all the time, it can be just too easy to overspend. … [Read more...]
“Will partial settlement make it hard to get a mortgage?”
Ms F asked: "I have been in debt management for five years after my marriage breakdown. After an inheritance, I want to pay off my DMP as it will carry on for years. I could pay in full but my house needs some urgent work and my car is on its last legs. I asked about my credit score if I offer a partial settlement and was told this would show as partially settled on credit score file. Will I … [Read more...]
How Pardners work – friends save & borrow in an informal club
Rotating Savings and Credit Associations (ROSCAs) are arrangements that allow friends to save together and withdraw lump sums from the scheme. ROSCAs are unregulated, relying on trust. The Money Advice Service says "those who use [ROSCAs] say they encourage savings and allow people without bank accounts access to credit." They have different names around the world, including tanda in South … [Read more...]
Don’t let credit rating worries make your debts worse
If you have too much debt, you may not want to do anything that will harm your credit score. But do you have any better alternatives? That depends on three factors: what is your credit record like at the moment? If it isn't good, then it isn't worth trying to protect! Check your credit score now, so you have accurate information. can you make the monthly payments to your debts? The … [Read more...]
Get a simple budget that works – don’t make excuses!
You need something that puts you in control of your spending. Your grandparents used to budget using a pencil and paper. But they didn't have contactless cards and mobile bills and overdrafts and credit cards and takeaways... Now many people find it harder to budget and feel they have lost control. For a budget to make your life easier, it has to be realistic and not time-consuming. This … [Read more...]
LOQBOX – how saving can improve your credit score
LOQBOX is a clever product that can help improve your credit score as you save regular amounts of money. And there are no fees at all. Which sounds good, doesn't it! I'm tired of suggesting that people with poor credit scores should get a "bad credit card", use it each month and repay it in full each month. That works work well if you can stick to the plan... but one 24 year old I was talking … [Read more...]
Open Banking has started – should you care?
Open Banking – never heard of it? Or seen the headlines but your eyes glazed over? It started on 13th January 2018. Over the following months and years, it’s going to change banking and payments in Britain forever. It is going to take a while - months or even years - before we know the full implications but find out what it might affect so you know what to look for. It may be brilliant, it … [Read more...]
How to add a Notice of Correction to a credit record – and is it worth it?
Finding something negative on your credit record is bad enough - but it feels a lot worse if you think it is wrong or unreasonable. You have the legal right under the Consumer Credit Act to add a "Notice of Correction" to your credit report if you feel something is misleading or you want to provide an explanation. What is a Notice of Correction? A Notice of Correction is something you … [Read more...]