Klarna details will start to be added to TransUnion and Experian records from June 2022. TransUnion says: Incorporating this data into credit reports will support consumers that are using this type of point-of-sale finance, whilst also ensuring lenders have a comprehensive picture of a borrower’s financial position. But this year TransUnion will not be using the BNPL information when it … [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.
See The top ways to check your credit records for details.
“My credit score is higher but affordability score is down”
A puzzled ClearScore user asked: My credit score has gone up but my affordability has gone down... not sure why sometimes I think these credit score companies just do what they want lol. Her credit score had increased by 57 to 573, but at the same time, her affordability score had fallen by 15 to 64. These weren't tiny changes... ClearScore affordability scores are out of 100, so a 15 point … [Read more...]
How can my creditors find me?
If you are very worried about your debts, you may be wondering how easy it would be to disappear and leave them all behind. perhaps you have already gone, leaving Britain because of Brexit. Will your old records be linked with new ones on your credit records? Can your creditors find you if move, go abroad, change your name? Some of these sorts of ideas aren't very sensible - and there may be … [Read more...]
Can I get a mortgage with recent defaults?
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]
ClearScore adopts the new Equifax credit scoring out of 1000
In mid November 2021, ClearScore has finally adopted the new 1000 Equifax credit scores. Equifax credit scoring changed in April 2021, when it switched to calculating scores out of 1000 - they used to be calculated out of 700. It also changed the bands used to describe your credit rating. Equifax didn't make an announcement about these changes. The Equifax Credit Report & Score was … [Read more...]
Is your name in a fraud database?
There are three large UK databases aimed at alerting lenders to possible fraudulent applications for borrowing: National Hunter, Cifas and Sira. If your name is on one of these connected with fraud you may find it difficult or impossible to take out credit and your bank account may be closed. But sometimes the information on the databases may be wrong and you need to get it corrected. In … [Read more...]
“Will Experian Boost help my credit score?”
A reader asked if she should sign up to Experian's Boost. Are any disadvantages? Would it really help her credit score? Experian's new Boost facility was introduced in the UK in November 2020: it can increase your Experian Credit Score by a maximum of 101 points; it is set up so it can never harm your credit score. Hundreds of thousands of people have used it. Let's see how it … [Read more...]
Should you get a joint account for the bills?
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 your … [Read more...]
“I’m using my credit card. But my report says I’m not!”
Mr M asked: I am trying to build my credit score but feel I am getting nowhere. I had 2 accounts in default which I paid about 1 year ago. My bills are paid on time. I have a Capital One credit card with a £200 limit. I always get £50 worth of petrol on the last Friday of every month and pay it manually a few days later. But I got an email from Credit Karma saying "When your last report came … [Read more...]
“Lower interest if your credit score improves” – a good idea?
Many people are frustrated by only being to access expensive credit. Their financial problems may be years in the past, but they still cannot borrow at a reasonable rate. The FCA's Woolard Review said in January 2021: Products or business models which aim to help consumers bridge from sub-prime to near-prime or mainstream have an important role to play in expanding access to credit, and … [Read more...]
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