Experian, Equifax and TransUnion, the three big UK credit reference agencies, have agreed that having a temporary "payment holiday" with a lender because of Coronavirus problems won't harm your credit score. James Jones from Experian says: “We’re really pleased to have reached an industry-wide agreement on this. Public awareness of credit scores and the role they play continues to grow, so we … [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.
How to improve your credit rating after a DRO
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...]
Don’t let credit rating worries make your debts worse
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...]
Can you get a default deleted? When will it drop off if you do nothing?
"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...]
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...]
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