LOQBOX is a new product that aims to 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 to … [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.
This pages has all Debt Camel's articles about credit rating in date order - there are a lot of them! If you would like to see the most read articles, check out Debt Camel's page on Credit Score - problems, queries and answers which also tells you how to find out what is on your credit record.
Should we use a joint account for everything? Or get a joint account only for the bills? How will a joint account affect our credit scores? Is it best to both use the same bank? I've seen a few questions about how couples share finances recently, so I've brought them together into one article. Should we use a joint account for everything? Don't rush into this! Not only are you linking … [Read more...]
A reader asked hopefully the other day if his debt had been written off: I've just seen that the balance on a credit card I haven't been able to pay for more than a year is now zero. If it's been written off that would be great, but how can I find out if this has happened? The bad news is that this is very unlikely. The debt has probably been sold to a debt purchaser Lenders like to get … [Read more...]
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 (in the Consumer Credit Act (1974) ) 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 a … [Read more...]
Do you have defaults on your credit records? A default badly damages your credit score, so how long will it be there? A default doesn't get deleted if you pay the money owing. The credit record rule is: the whole debt, including the default, is deleted from your credit record six years later after the first default. This applies even if you still owe some money. For example, if you have some … [Read more...]
SPOILER ALERT Have a go at the quiz here before reading this page! A reminder: all the examples are for someone living in England, Wales or Northern Ireland. The same general diagram may apply in other countries, but the types of debts, the timescales and credit recording may be very different. A brief (no jargon!) explanation of my terms: Priority = a debt that is important, because … [Read more...]
Is that debt is a priority? Could you get a CCJ for it? Why isn't it on your credit record? If you have problems with your debts, it helps to understand why different debts sometimes have to be handled differently. Getting one wrong could be a big mistake! Here is a quiz, seeing if you can place some debt examples into the right place on the diagram below. Whether you think you are a debt … [Read more...]
A reader asked: I want to terminate my PCP car finance. The car's fine, good condition, but we now need a bigger car. According to my contract I can hand it back. But I am going to need to get another car, so I am worried this will harm my good credit record. Would part exchange be better? Your right to end a PCP contract early Personal Contract Purchase (PCP) is the most common way to buy a … [Read more...]
Here is a simple way to think of your credit cards and catalogue accounts using the traffic light colours. It's meant as a warning signal that you may have problems in the future. If you are in difficulty with bills or debts now, it's too late for this early warning to help... have a look at your possible options and get some debt help now! Red - Amber - Green First you need to compare the … [Read more...]
How much will my credit rating go up/down is a very common question and one that is often tricky to answer. But here are some guideline numbers from Experian that may help. The other two credit reference agencies, Equifax and Call Credit may have different trigger points and numbers, but I think they have broadly the same approach. These are only indications - your credit score may not go up or … [Read more...]