A reader asked: I recently got a Level credit card to try to improve my credit score. I have just found out that I am being charged interest from the date of my purchases. I thought this was illegal? This isn't a credit card I have come across before. While charging interest like this isn't illegal, it is very unusual so I have had a look at this. Level is a "credit builder" card, aimed at … [Read more...]
A reader asks ...
Readers have asked a huge variety of questions in the comments below Debt Camel articles or on Instagram. From credit ratings and mortgages to payday loan refunds and IVAs...
Some of them needed such long replies that I have turned them into the articles that are gathered here.
A puzzled ClearScore user asked: My credit score has gone up but my affordability has gone down... not sure why sometimes I think these credit score companies just do what they want lol. Her credit score had increased by 57 to 573, but at the same time her affordability score had fallen by 15 to 64. These weren't tiny changes... ClearScore affordability scores are out of 100, so a 15 point … [Read more...]
A reader asked: For 10 years now I've been racking up debt and then burying my head in the sand. I have had letters upon letters from debt collectors, I just bin them all. I'm sure I've had a few CCJs as well. I haven't had any new credit or anything for three years. I now have a new job and more disposable income - not a lot, but better than benefits! Is there anywhere I can look to see … [Read more...]
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]
"I have three credit cards, all maxed out. I am only paying the minimum amounts each month as I can't afford more. What are my options as this will take forever and cost a lot in interest?" A lot of people may be in a similar situation. If your credit cards are all at their limit but you have no spare money to reduce this, your options depend on how good the rest of your finances are. This … [Read more...]
A reader asked if he should offer a £1 a month token payment to his debts, wondering if his creditors would ever accept it. The simple answer is that you should make token payments offers: TO non priority debts WHEN it is all you can afford. BUT if you don't expect your situation will improve soon, you may have better debt options. In 2021 millions of people can't afford the normal debt … [Read more...]
A reader asked if she should sign up to Experian's Boost. Are any disadvantages? Would it really help her credit score? Experian's new Boost facility was introduced in the UK in November 2020: it can increase your Experian Credit Score by a maximum of 101 points; it is set up so it can never harm your credit score. Hundreds of thousands of people have used it. Let's see how it … [Read more...]
Mr M asked: I am trying to build my credit score but feel I am getting nowhere. I had 2 accounts in default which I paid about 1 year ago. My bills are paid on time. I have a Capital One credit card with a £200 limit. I always get £50 worth of petrol on the last Friday of every month and pay it manually a few days later. But I got an email from Credit Karma saying "When your last report came … [Read more...]
A reader asked about a friend who is looking at an Individual Voluntary Arrangement (IVA): Mr X is 23 and owes just over 10k on various credit cards and loans. He earns £20k and hopes to get a £10k bonus this year. The IVA firm says the bonus doesn’t matter as it's not guaranteed. But won't the IVA take half of it? Would it be better if he got a job with a larger basic salary and no bonus, or … [Read more...]
A reader asked what she should do as her reasonable Full & Final settlement offer had been rejected. It's going to seem obvious, but the creditor rejected the offer because it didn't seem reasonable to them. You may think "I paid off the amount I borrowed ages ago, their interest is too high" or "They probably bought this debt for pennies, so they should be happy to accept 20%" but … [Read more...]