"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...]
Credit Ratings
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.
I have debts – can I get a mortgage?
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...]
Should I keep paying an old debt?
Do you have to keep making payments to old debts? It can be easy to get stuck in a long-term Debt Management Plan (DMP) or payment arrangements. If you are paying little each month, your debts will take a very long while to be gone. This article looks at the questions people often ask about old debts where they have been making monthly payments to the debts. If you haven't been making … [Read more...]
How much will my credit score change if … ?
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...]
“Can mortgage lenders see old debts, no longer on my credit record?”
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...]
UK credit records & scores – not fit for purpose!
The Financial Conduct Authority (FCA) has recently started a Credit Information Market Study. In the consultation on its terms of reference, the FCA is asking: Do you consider that the credit information market is working well? I don't think it is. It has grown up over the years into a poorly understood, complex system which has many problems. It isn't working well for consumers or … [Read more...]
The 3 best ways to check your credit score & records – all free!
Keeping an eye on your credit reports is a good idea, but how should you do it? In 2019 there are more than sixteen different ways to check your credit record! The myth of a single credit score You don't have "one credit score" or "one credit record". You have three different ones. This is because there are three main Credit Reference Agencies (CRAs) in Britain: Experian; Equifax; … [Read more...]
How to repair your credit record after bankruptcy
Bankruptcy badly affects your credit record for six years. This article looks at what should happen to your credit record when you are discharged from bankruptcy after a year. Even if you have no intention of getting into debt again, a good credit score makes it easier to rent a house, get a mobile contract and it's essential if you want a mortgage. First check what your credit records … [Read more...]
Credit cards – to close or not to close?
If you have a credit card with a zero balance, should you close it? Would cancelling it improve or harm your credit score? This is important to get right if you are trying to clear your debts as fast as possible or if you are hoping to get a mortgage soon. It also applies to catalogue accounts. Here are the main arguments for and against closing the credit card: Four reasons to … [Read more...]
“Can I transfer a loan to my partner? It’s car finance.”
A reader asked: I got a car loan last September because I had better credit than my partner. She has been paying it off since the start by transferring the money to my bank account. Now the question is, would it be possible to transfer the loan to my partner so it's completely in her name? And if so would it move off my credit report? You can't "transfer" a loan The simple answer is No. … [Read more...]
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