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...]
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.
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...]
A reader asked if starting to pay a defaulted account will help his credit score. The simple answer is No! But there are very good reasons why paying defaulted debts will improve your general credit situation, making it easier for you to get a loan, a mortgage or a credit card in future. That credit rating number isn't the only thing that matters! To start, it's good to know what your credit … [Read more...]
A reader asked: I've got a parking ticket in a car park which isn't right because you couldn't see the signs the way I went in. I've been sent a letter saying if I don't pay they will go to court and this will then show on my credit record. My partner says she got a speeding fine and that wasn't on her credit record. Are they lying to me? To find out what will happen if you don't pay a parking … [Read more...]
A reader has asked how Full & Final settlements (F&Fs) would affect her credit rating which is currently looking good as her debts were all defaulted and have dropped off her credit record. A full and final settlement happens when the creditors agrees to accept an amount which is less that the total owed to settle a debt, and agrees that the debtor will not be pursued for the remainder. … [Read more...]
I am sceptical about firms offering to improve your credit rating - too many of them are either scams or something you can easily do yourself. But Credit Improver is authorised by the FCA, any complaints about it can be considered by the Financial Ombudsman and it is offering a "guarantee" so I decided to take a look. How Credit Improver works When you sign up to Credit Improver you are buying a … [Read more...]
A couple of questions about British Gas defaults from Debt Camel readers in the last few weeks: I check my credit file monthly. I have just noticed an account that was never on there before from British Gas saying that I owe £179 from 2008. The only thing that is showing is a default issued Jan 2017. I have no recollection of this money. We didn't move from that address until 2010. What can I … [Read more...]
A reader asked: My Noddle report shows some settled debts but one is shown as satisfied. I am sure I paid them all off in full. Does it make a difference and should I ask for this to be changed? … [Read more...]
Paying your mortgage on time helps your credit score. Shouldn't paying your rent do the same? That is the idea behind Credit Ladder, where tenants renting from a private landlord can sign up to have their rent payments reported to Experian. There aren't any figures published yet on take up, but Credit Ladder's director, Asa Bentley said: The reaction to our service has been beyond our … [Read more...]
A reader asked: "I've seen advice to improve my credit rating after a Debt Management Plan by getting a "bad credit card" and repaying it in full every month. Would it be a good idea to get two of these cards? I don't want to borrow any money, just to get a better credit score." This is a good question! Let's start off by looking at why getting a bad credit card such as Vanquis is often … [Read more...]