UPDATE - September 2020 - now Credit Ladder are proposing to charge you £60 a year to report to both Experian and Equifax. I suggest you don't bother! As a means of paying to try to improve your credit score this seems unnecessary, reporting to two is very little better than reporting to one. Do yourself a favour and pay that £5 a month off a debt instead. Or add it to your savings account if … [Read more...]
There is a lot talked about credit ratings on the Internet but it can be very confusing and sometimes even wrong!
If you can't make the proper payments to your debts, your credit rating will suffer. But different debt options affect your credit score in different ways, so I've written these articles looking at the details of each situation.
And most importantly, when will your credit rating improve and what can you do to help this.
You never need to pay to check your credit score, or look at the details of your records any more. See The top three free ways to check your credit records for details.
If you would like to see the most read articles, check out Debt Camel's page on Credit Score - problems, queries and answers.
In March 2020 Experian, Equifax and TransUnion, the three big UK credit reference agencies, agreed that having a temporary "payment holiday" with a lender because of Coronavirus problems won't harm your credit score. The FCA, who regulates lenders in the UK, then set out detailed rules about payment breaks for most kinds of debt, including mortgages, unsecured loans, credit cards, catalogues, … [Read more...]
A reader asked if his credit score would improve if he paid off some debt. First a useful warning from Experian: There’s no one credit score or magic number – different lenders score differently. But a good place to start is by looking at what exactly is on your credit records. There are three credit reference agencies in Britain and you have to check all three as they may have different … [Read more...]
A Debt Relief Order (DRO) only lasts for a year and then your debts in it are wiped out. But it will be shown on your credit record for six years. This article looks at what should happen to your credit record during the year of your DRO and at the end of it. If some of your creditors have go tt this wrong, you need to ask them to correct any problems. And finally it looks at how to start to … [Read more...]
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...]
A reader asked: In August 2015 a CCJ was registered against me for £211. I paid off the balance, but not within the month. I have bank statements to prove its been paid. On my credit report it shows the status as “active” even though I have paid it. I’ve contacted the debt collector multiple times but they say as it’s an old case it’s no longer on their system and they can’t help me. I don’t … [Read more...]
"This default is destroying my credit score - how do I get rid of it?" This is a very common question! It's sometimes asked when people's finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair in someway I will look at various cases to see what - if anything - can be done for each of … [Read more...]
You know a mortgage will cost the same or less than your rent which you have paid without problems for years - so it's obvious you can afford the mortgage. But that isn't what a mortgage lender looks at when they assess affordability! A few years ago, lenders only looked at the size of your deposit, your credit rating and your income. Now, in 2020, the "affordability calculations" look … [Read more...]
How much will my credit rating go up or down is a very common question. But it's often tricky to answer! Here are 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 a third won't be as … [Read more...]
A reader asked: I know a debt drops off my credit file 6 years after it was settled or defaulted. I just want to ask when I apply for a mortgage, can the lender dig up unpaid debts if they are no longer showing on my credit report? This is a common question. The answer is Yes, sometimes because a lender can see other information that may show the debts. Let's look at what the lender can see, … [Read more...]