How Long to Repair Credit – Can it Really be Done in a Month?

If you have less than perfect credit fixing the problem as soon as possible is understand quite a priority. After all, there is simply so much you cannot do if you have a bad credit record. Getting a mortgage or a car loan is usually out of the question as is getting an unsecured credit card. You may even be limited in where you live as most landlords routinely check a potential renter’s credit before leasing to them these days.

How long to repair credit is a concern people have, can it be done quickly? Can it be done in 30 days like that as the advert you just saw on the Internet said? Can you really ‘instantly remove’ negative entries legally, even for valid debts?

How Long to Repair Credit – The Basic Facts

Credit repair is a gradual process. Put in the most basic of terms, once you have bad credit your goal is to “persuade” the credit bureaus that you have changed your ways – or that your financial situation has improved – and that you really are a person worthy of credit and a better credit rating.

The first thing that people trying to repair their credit need to do is sit down and make a plan. Not just a financial plan but a credit repair plan as well. This involves making sure that you have the most recent copy of your credit report from all the credit bureaus. Those sites that give you a free credit score? That’s fine for general monitoring but you actually need to see, line by line, what the entries are that are dragging down your credit score.

The law mandates that you are given a credit report from all the credit agencies for no more than £2. These days you can usually access your credit report online provided you can pass the ID checks. If that is not the case then it can be mailed to you.

How Long to Repair Credit – Going Through Your Reports

Once you receive your credit reports you should sit down and go through them carefully. It is not unusual to find mistakes on a credit report. Credit agencies are merely the reporters of information, they do not verify it. If you find a genuine mistake you should document it, find proof that it is a mistake (receipts, canceled cheques etc) and write to the credit bureau to ask that the matter is investigated and the offending entry removed.

That process takes about 30 days and if they decide in your favor the entry is removed immediately. Do make sure that the item you are disputing really does constitute a mistake though – disputing a valid debt can be considered fraud.

The next step is to make sure that you have a payment plan to pay off any outstanding debts as soon as possible. If you have been avoiding debt collection calls it is time to stop.

Talking to these people to work out a reasonable repayment plan really is the best course of action and once you start making the proper payments the creditor should stop reporting you as delinquent to the credit bureaus.

How Long to Repair Credit – Making a New Start

Once you have made several payments on any payment plans you have your credit rating should begin to bounce back. It’s not a speedy process, it may take several months. In the meantime as strange as it may sound at first, you should open a new line of credit – even if your only option is a secured credit card or a small short-term loan (sometimes referred to as a credit builder loan)

Just having a new line of credit available to you – secured or not – is a good thing in the credit reporting agencies’ eyes. Start using it responsibly and it’s even better.

There really is no (legal) quick fix for bad credit. It can take as little as six months to as many as several years to regain your good credit, depending upon how bad you let it get in the first place. The effort is worth it though. But it’s an effort, because despite what some of those dodgy looking ads tell you, there is no ‘magic fix’ for a bad credit score, no matter how many times you pay them ‘just £19.99’.

The post How Long to Repair Credit – Can it Really be Done in a Month? appeared first on LoanPig.

source https://www.loanpig.co.uk/how-long-to-repair-credit-can-it-really-be-done-in-a-month/

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Nice Car – But Can You Really Afford It?

(Updated for 2018)

You’re sick of waiting for the bus to get to work. The train is expensive and neither option seems very reliable these days, as every other day there seems to be a delay or cancellation. Life would be so much easier if you had a car. And more fun.

Having a look around, there seem to be some bargains out there. Especially if you’re willing to go the used car route. There are some decent finance deals as well, even if your credit is a bit dodgy.

So, after shopping online for a few weeks you head out to the dealer. The beauty on the forecourt – the nice little runaround that would be perfect for getting to work and for all kinds of leisure purposes –  would, the saleslady says, only cost you £200 a month. You could swing that.

However, before you sign on that dotted line – actually before you go to the dealers at all – you do need to stop and work out exactly what the car will really cost you, because it may be a lot more than you bargained for.

Why’s that? Allow us to explain:

The Legal Upfront Running Costs

Most cars purchased from a dealer do come with a good MOT and some may even be taxed already, but that’s not always the case. And even if it is, once you buy a car, you have to insure it. You don’t have a choice, it’s the law.

If you are financing the car the dealer won’t let you get away with third-party minimum coverage either. Until you’ve paid every penny on the vehicle it’s still theirs, and they want to make sure their asset is properly protected.

So right there, the chances are good that you will, in addition to whatever downpayment the car dealer wants, have to come up with the cash for at least the first months insurance payment and then for every month thereafter (although it’s cheaper if you can pay 12 months in advance and less of a hassle)

Running Costs

Next, you have to look at the running costs. Not just petrol, we’ll get to that in a minute. Costs like all of the following:

 

• Basic parts replacement – Tyres every one to two years, brake pads every two to three, headlight and sidelight bulbs at annoyingly random times

 

• Sensible maintenance – Tune-ups, car washes, car detailing, MOTs etc.

 

• Accessories – car mats, air fresheners

The Extras It’s Easy to Forget

How much is a litre of fuel at your local garage? How far will that take you in the car you are considering purchasing? How much is fuel near your office? How much will it cost you to park near your office? These are going to be daily costs that you can’t avoid and yes, they add up really quickly.

The Unexpected

Even the best maintained of vehicles can go wrong at any time. Will you be able to handle things if, for example, the suspension failed and you needed to pay a mechanic before he started work?

The simple fact is, on top of your £200 a month car payment you could be looking at anywhere between £150 – £300 in day to day and running costs on a monthly basis. Now, can you still afford that? Be honest with yourself before you make a final decision.

For those of you that already bought a car and face an unexpected emergency repair or need new tyres, remember you can get between £100 and £1000 as a short-term loan by filling in our application form and applying now.

 

The post Nice Car – But Can You Really Afford It? appeared first on LoanPig.

source https://www.loanpig.co.uk/5-questions-you-should-ask-before-buying-a-car/

5 Ways You are Wasting Money You Can Stop Today

 

(Updated for 2018)

There always seems to be too much month and not enough money doesn’t there? Those last few days before you get paid are often far harder than they should be. But you make decent money, where’s it all going?

Excellent question. And sadly, if you are like many people not always on the right things. We all have a tendency to waste money without even realising that’s what we’re doing. Here are five very common ways people waste their hard earned cash, often leading them into end of the month financial troubles. are you guilty of any – or all- of these?

Check out the video below and then read on for even more sage advice..

Not Shopping Around

Yes, you’re busy. No, you probably don’t have time to check every supermarket in town for the best price on your weekly essentials. So yes, you may miss a deal or two and spend a little more than you needed to. Or do you?

Most of us do have at least some downtime (usually at in the evening) that can be put to a better use than watching yet another night’s worth of repeats with too many adverts on TV. Make use of that time to comparison shop online, to search for coupons and deals and then when you find them, and you will resolve to make regular use of them. You’ll be surprised by just how much you save, we promise.

Failing to Pay More than the Minimum on Your Credit Cards

You always make sure you meet the minimum payments due on your credit card every month. Good for you, it’s a great start. But by doing that you are actually losing money and you aren’t doing as much for your credit score as you could either.

Credit card balances accrue interest every month. So if you don’t chip away at them significantly every month that interest will keep building and you’ll barely get anywhere in terms of clearing the principal part of your balance.

If you can’t pay off your balance every month – which is the ideal, both for your financial health and building up your credit score – at least make an effort to pay double the minimum due. That way you’ll be saving money on interest and putting yourself in a healthier financial spot.

Being a Little Too Bulky

Not literally, but in your buying habits. Buying in bulk can be a great idea, but only when it truly makes sense. Yes, that’s a great price for beans – 20p off per can – and you will probably eat them all before they expire, so yes, that’s a good deal. But buying three loaves of bread instead of one just to get 75p off? Are you really going to eat that much bread before it goes mouldy? Probably not, so that’s a waste of money.

By all means, shop in bulk to try and save money. But only when it really will. Stop and think before you’re tempted by the seemingly huge savings and make sure it really is a good deal – and one you need – before you buy.

Not Changing Those Lunchtime Habits

Do you like to score a cheeky lunch from Nando’s a couple of times a week? After all, spending £5 on some seriously tasty chicken once in a while isn’t so bad is it? And your day never starts right if you have to drink the lukewarm vending machine coffee at work instead of your beloved Flat White from Starbucks, does it?

The thing is, all of these ‘little treats’ add up over the course of the week, and often to far more than you realise. And there are cheaper alternatives out there that are just as good. Learn to make your own peri peri chicken, cook some up at home and take it to work. It’ll cost less and you’ll actually probably seriously impress some people if you share your efforts (and save them some cash too)

Can’t live without your frothy coffee? Spend £9.00 on Amazon for a handheld milk frother and keep it at work. It’ll pay for itself in about three days and you’ll be surprised how well it works.

Little changes like this may seem insignificant but they will save you far more than you think.

Not Keeping Track of What You Spend

The biggest mistake many of us make when trying to save money and cut expenses are failing to keep track of what we spend. Once you do it becomes easy to see where money is being wasted and how you can make changes that help you save more.

You don’t even need fancy software to do this,  as you probably have one of the best tools to help you in (or close) to your hand right now; your mobile. There are some fantastic apps out there – most of them free –  that make it easy to keep track of every penny. So make that £700 iPhone earn its keep and add a few of them to it today.

 

 

The post 5 Ways You are Wasting Money You Can Stop Today appeared first on LoanPig.

source https://www.loanpig.co.uk/5-ways-youre-wasting-money/

1 Month Loans – What They Are and How to Find Them

Taking out a loan from a loan company for just a month may seem a  little strange at first but it is something that more and more people are choosing to do. Although these short-term loans are fairly easy to find and to obtain – even if you have bad credit – you really have to weight up the pros and cons attached to them before making the decision to take one out.

How 1 Month Loans Work

One month loans are similar to payday loans but not quite the same thing. Both are available to people who are employed and have a verifiable source of income and both are also often available to people who have less than perfect credit. The usual minimum requirements are that you are over the age of 18 years old, are a legal UK resident, have a verifiable source of income and an active bank account.

Unlike many payday loans through one-month loans are due in full on a pre-agreed date that is no further in the future than a month from when you received your loan funds. Usually, on the appointed day the loan company will automatically authorize the loan repayment to your debit card or have it transferred out of your bank account. At this time the fees due will be taken out as well.

How High are the Fees Attached to 1 Month Loans?

The fees and interest attached to short-term loans are somewhat higher than those associated with longer terms loans, even the lenders admit that. This is because these loans are relatively easy to get, funded very quickly and offered mainly to people with a less than perfect credit record. These rates are not as high as many people think though -the law in the UK now makes sure of that – and for many people, the emergency cash solved a crisis so they feel it is a relatively small price to pay.

Alternatives to 1 Month or Short Term Loans

Because of the higher fees attached to them, many financial ‘experts’ advise that short term loans should really only be used as a last resort. They say that before you take one out you should have exhausted all your other possibilities. Here are the pros (and cons) however) of some of the alternatives commonly cited by financial experts.

Borrowing from family or friends

Asking family members or friends to help you out of a tight spot is advice that almost all financial experts give. The problem is that in this day and age most people don’t have the cash to spare and even if they do if you do not manage to pay them back properly the damage to the personal relationship can be hard to fix.

Going to eBay

Some people are surprised by just how much they can get for stuff that has been lying around their house unused for months, maybe even years, if they put it up for sale on a site like eBay.

The downside to this is that eBay sales take at least a week – and it can be up to a month before the seller actually gets their cash – and if you are in dire need of funds that just may be too long.

Getting an Extra Job

This is a favorite piece of advice from the experts but sadly having one job is hard enough these days let alone being lucky enough to find an extra one. Working overtime is another option often suggested but again, this is something that is hard to come by for most people.

As you can see these are all great ideas but not always very workable. For many people even after they have considered all of these a short-term loan is still their best option.

Making 1 Month Short Term Loans Work for You

Most people take out a 1 month loan because they need cash fast and these loans can be funded in just a few hours in many cases. The best way to make such a loan work for you is to plan just how you are going to pay it off on time. A responsible lender will, when considering your application, only approve it if they think your income will allow you to pay it back on time.

If you are approved for a short-term loan ensure that you know exactly when your payment(s) are due and that the funds to cover the payment are in your bank account in plenty of time. Only borrow as much as you need and can afford to pay back and if you do anticipate a problem covering your loan payment, call your lender in advance so that a workable solution can be discussed.  

 

The post 1 Month Loans – What They Are and How to Find Them appeared first on LoanPig.

source https://www.loanpig.co.uk/1-month-loans-what-they-are-and-how-to-find-them/

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Credit Repair Credit Cards – Are They Real? Do They Work?

If you are concerned about your credit score and want to improve it chances are that you have done some research into just how you can do that. And along the way, you may have come across the phrase “credit repair credit card”. But does such a thing really exist or are such things a myth? (or worse still a scam)

Using a Secured Credit Card to Repair Credit

You may be a bit familiar with the concept of a secured credit card. The idea is that you deposit a certain amount of money into a special savings account with a card issuer and in return, you receive a credit card with a line of credit equal to your deposit. At first, this may seem a bit silly – paying for a line of credit – but as a credit repair credit tool, a secured credit card can be very useful.

There are a couple of reasons for this. The first is that your new credit line, even though it is secured, will be reported as available credit to the credit bureaus. How much credit you have available to you is a factor in deciding your final credit score so the fact that you now have one when you did not before can help right away.

A secured card becomes even more useful as a credit repair credit card when you use it properly. That means using it regularly without eating up all of your available credit and then paying your bill on time every month (paying it in full is even better) These payments will be reported in the same way as payments on an unsecured credit card would be and will have the same positive effect.

Using a Subprime Credit Card as a Credit Repair Credit Card

The biggest problem that some people face with a secured credit card is actually coming up with the lump sum of cash they need to put down to get one, especially since that can be £200 or more. In this situation, some people might consider using a subprime credit card as a credit repair credit card instead.

It’s tempting. These cards usually are available to people with poor but not awful credit and instead of a security deposit you are charged a lower “application fee” You are then issued what on the face of things is an unsecured low limit credit card.

There are a couple of problems though. One there is usually an annual membership fee. Not unusual in itself there is one with most credit cards. However, that fee is deducted from your limit before you get your card. So, if you have a £200 limit but the fee is £75 your limit is reduced to £125 already and you already have a balance of £75 to pay off without ever using the card yourself.

Then there is the matter of the interest rate you will be charged. Subprime means an interest rate that is higher than the prime rate – the rate charged on “regular” credit cards. Because you already have a balance you also already owe interest unless you pay it off very quickly and at a rate of as much as 28 or 29% that can add up to a lot.

If you understand all of this and still want to get a subprime credit card proper use of it will build your credit in the way a secured card will. Just be aware of the fact that unless you pay all your balances off in full every month you will be paying more to use a subprime card as a credit repair credit card than you would with a secured card so your savings are only perceived, not real at all.

The Credit Repair Loan

So what if you can’t get a subprime credit card and you don’t want to fork over the large deposit for a secured credit card? Another credit building alternative is a credit building loan.

The idea here is that you take out a small short-term loan and pay that back according to the exact terms of the loan. These payments are reported to credit agencies and help build a positive credit profile as well. And as short-term loans are often available to those with bad credit but a steady income they are relatively simple to obtain.

The key here will be to ensure that you pay the loan back on time and according to the payment schedule agreed. Don’t be tempted to take out a loan to help build your credit, splash the cash on a new video game or clothes shopping spree just because you have it and then find you can’t pay it back, as that will only make your credit situation even worse than it was before.

 

The post Credit Repair Credit Cards – Are They Real? Do They Work? appeared first on LoanPig.

source https://www.loanpig.co.uk/credit-repair-credit-cards-are-they-real-do-they-work/

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5 Money Mistakes We All Keep Making – And How to Avoid Them for Good

(Updated for 2018)

Everyone makes mistakes.  And it does seem that we all do tend to make the same money mistakes. We even make some of them over and over again. This is a problem on a number of levels, but most of all because these common mistakes can seriously derail your current and future financial health.

Here’s a look at some of  the most commonly made of these mistakes and how they can be avoided:

Not Making a Plan for Retirement

The days when a company pension would keep you in good financial shape when you retired are long gone. And as we all know, state pensions are rarely enough to keep one’s head above water let alone maintain the lifestyle you were used to when you were working.

All of this seems a long, long way away when you are in your twenties and thirties though. Actually in your forties for many of us as well. But retirement can creep up on you a lot sooner than you expect, and the last thing you want to realise when this happens is that you haven’t saved for the future.

If you neglect to make a proper retirement plan you could find yourself facing serious financial consequences when the time comes to get that golden clock and bid the working life goodbye. So, organise your pension plan early and add to it regularly. The earlier you start the better off you’ll be in the future when you do reach retirement age, even if that’s still decades away.

Baulking at Budgets  

Sitting down and actually making a budget can seem like a very cumbersome and boring thing to do. Actually trying to stick to it can be boring – and rather tough – too. You survive right? Who has the time to sit down and break down their incomings and outgoings into some silly little spreadsheet?

Well, boring or not, every financial expert in the world will tell you that making – and sticking – to a monthly budget is crucial to your overall financial health, both now and in the future.

Contrary to what you might think a living within your budget does not mean you have to give up your social life – and those other little luxuries that make life a little more bearable – completely. You just need to set aside a reasonable, workable amount that can be spent on them on a monthly basis and, when that’s gone, at least you’ll still be solvent and have still had some fun.

Failing to Plan for a Rainy Day

You made a budget (finally) Good for you! Now, here’s a question. Did you add in saving for the proverbial rainy day? Many of us don’t, and when something does go wrong it can blow all of those wonderful budgeting efforts out of the water.

Yes, if the washing machine packs in, or your car breaks down, or if your fur child gets sick and needs to go to the vets and you need cash fast you can often get a short-term loan to help. However, such things should really be a last resort.

Having a rainy day fund can bring you a great deal of peace of mind and help you stay out of debt. And they are easier to build up than you might imagine. That £2.50 you spend on that tiny little Flat White from Starbucks every morning on the way to work? Stop doing that and bring your coffee from home and you could stash away £12.50 a week, which will turn into £50 a month.

Not the hugest sum, but a good start and there are almost certainly other, similar ‘little’ regular expenditures you could cut fairly painlessly to help you save even more.

Being a Sucker for a ‘Great Deal’

We all can get suckered in by a good deal every now and then, but do you really know how much you’re saving?

Even when you’re buying things on sale you’re still spending money – money you perhaps wouldn’t have spent otherwise. Would you really have bought those three boxes of cornflakes if they hadn’t been on sale?  Especially if it’s likely they won’t all get eaten before they go stale? Sometimes a great deal isn’t quite as good as you thought if you stop and think about it.

Try not to get drawn in so often in by ‘potential’ savings and start thinking more about what you’re actually saving. There’s a right way and a wrong way to take advantage of discounts, so make sure you’re not giving in to the tempting offers that don’t really make financial sense and spending what you shouldn’t.

Not Factoring in Long-Term Extra Expense

There are some substantial – and sometimes very necessary – expenses that we find difficult to see as long-term expenses. We see the big numbers in the initial cost, but not the small numbers that inevitably trail after them.

Take buying a car for example. Many people just consider the monthly finance payment and their car insurance. They fail to take into consideration all of the other expenses attached to car ownership, and they can really add up!

This is why we at LoanPig always think carefully about the loans we offer people and have a Loan Calculator to show you how interest will affect your loan before you apply for it. While you might be able to afford to pay back the general sum, the interest that is added to it can sneak up on you if you’re not prepared for it.

Before you make a big financial commitment, think carefully about all of the additional costs and additional expenses that might come with it. That way, you will be sure not to commit to something that will drain your future savings.

 

The post 5 Money Mistakes We All Keep Making – And How to Avoid Them for Good appeared first on LoanPig.

source https://www.loanpig.co.uk/6-money-mistakes-keeping-making/

Top Tips for Getting the Most Out of Your Money on This Year’s Holiday Abroad

Yes, it’s still freezing cold here in the UK but that does not mean that many of us are not already eagerly looking forward to our summer holidays, with many of us planning to head off abroad. As this is a great time to score bargains on holiday travel – especially on foreign travel – no doubt some of you already have your flights and hotels booked and are already planning your impressive warm-weather wardrobe (in your head at least.)

The one thing that does tend to get overlooked until the last minute, however, is travel money. You know, the actual cash you’ll need in your pocket (that’s figuratively rather than literally for safety’s sake btw) in order to eat, drink shop and be as merry as you’d like during your big trip.

Saving for your holiday expenses is one thing, but just as important is that you manage those savings sensibly once holiday time arrives. Here at LoanPig, we wanted to take the time to walk you through some great tips for managing your travel money that will prevent you from incurring additional charges and make the most of your hard earned cash!

Plan Ahead

If you are going abroad you are, at some point, going to need to convert at least some of your holiday cash into the local currency. Credit and debit card acceptance is widespread but the chances that they’ll take your VISA card at that cute little roadside stall just off the beach are slim to say the least.

The biggest mistake people make here is to wait until they go to the airport to exchange their money. Airport currency exchanges have notoriously high fees and sometimes even very poor exchange rates, so should be avoided whenever possible.

 

A better idea? Keep watching the exchange rates and when they tip in your favour head down to the high street bank and change your money there. Even if there are still weeks to go before your holiday you won’t be tempted to spend it, simply because you can’t!

Check your Credit Card Usage Facts Carefully

As we mentioned, credit and debit card use is widespread all over the world now. There will indeed be plenty of places wherever you travel abroad that will happily accept your VISA card, Mastercard or American Express branded plastic. However, before you hand it over, there’s a lot to consider.

The first thing is that many card issuers will decline a foreign transaction automatically on security grounds. To get around this you can contact your card issuer in advance to inform them of your trip, but, as many a holidaymaker has found out, that message does not always seem to get to the right computers and you could find yourself in a bind if you rely on these cards as your main funding source.

The second problem is that many credit cards – and almost all debit cards – charge a fee for foreign transactions and they can be rather large. Therefore it’s crucial you understand all the terms, conditions and fees associated with using your card(s) abroad before you ever do so.

Consider a Prepaid ‘Travel Debit’ Card

A prepaid travel card works in the same way as a debit card and can be loaded up with appropriate currency before you travel. These cards not only save you from carrying around lots of cash while you travel but also help to regulate your spending. Shop around before choosing one though, as the fees can and do vary significantly.

Flexible loans

If you are going away on a last minute trip and don’t quite have the time to save money to put towards your trip, something that you can use to keep your holiday funds in place and your bills paid is a flexible loan.

A flexible loan can be used to boost your monthly earnings and you can pay it off in installments at a later date, making it easy to settle once you have returned.Only borrow what you need and can afford to pay back though, or you may find yourself in a financial bind that will seriously crucial your holiday plans for next year!

Make a Holiday Budget and Stick to It

Yes, you want to have fun on holiday. Yes, you’d like to have a few nice meals out and hit a few of the local hotspots. As well you should. But do you really need to buy Auntie Kim that huge straw donkey that costs the equivalent of half a week’s food shop at home? Probably not, even if it is really cute. Or those 100 euro designer flip-flops, when the 20 euro versions generic will suffice.

In addition, thanks to sites like Tripadvisor and Yelp! you can plan some of your excursions in advance and scope out where savings can be made.

 

The post Top Tips for Getting the Most Out of Your Money on This Year’s Holiday Abroad appeared first on LoanPig.

source https://www.loanpig.co.uk/top-tips-for-getting-the-most-out-of-your-money-on-this-years-holiday-abroad/

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Top 7 Credit Score Tips for Everyone

A lot of the issues that surround credit scores and credit reports can be rather confusing to say the least. But the one thing that most people know is that the higher their credit score is the better their chances of getting a mortgage, a car loan or a credit card with a decent interest rate and all those cool ‘perks’ that sound so appealing in the adverts.

Most people wonder just what are the best ways to help ensure that they have the highest credit score possible and although that in itself is a complex issue there are some tips you should know about that are probably more important than others. Here are our top 7 credit tips:

1) Pay Within Thirty Days

A large chunk of your credit score is based upon your payment history and more specifically debts that are over thirty days past due have the biggest impact. This essentially means that if you are going to be a few days late with a credit account payment so be it but try never to let it go past that thirty-day mark to avoid it having a bigger impact on your credit score.

2) You Do Need a Credit Card

A lot of us may have had older relatives who told us that the best way to live your life, financially at least, is to pay for the everyday things you buy with cash as you can afford them and avoid the dangers of credit card use altogether.

Logically this advice makes a lot of sense. However, realistically, what are the chances that you are ever going to have 200,000 in the bank to buy a house unless you hit the lottery?

If you choose to open no credit accounts but carry no debts you are still a big risk in the eyes of a lender because you really do not have a credit score at all. Therefore you really do need to open at least one credit account and use it responsibly and on a regular basis in order to be able to qualify for bigger ticket lines of credit in the future.

If you are finding it hard to qualify for a credit card at all you can consider obtaining a secured credit card and making regular responsible payments. Alternately, if you do want to avoid getting into secured credit cards right now – they can be pricey – paying off a small, short term loan properly and promptly can give your credit score a nice boost as well.  

3) Canceling Your Credit Cards May Not Help Your Credit Score

Although many people do not realize it canceling credit cards can actually damage your credit score rather than help it. This is especially true if you have had the card for some time and the account has become a part of your long-established credit history.

Even if you never intend to use the credit card again – you found one with a better interest rate, better perks etc and you intend to use that in the future instead – it is much better to shred and forget the card than cancel it altogether as 15% of your total credit score is based on the length of your credit history.

Keeping the account open is also better for your debt to credit ratio in most cases and that is something that accounts for a whopping 30% of your credit score!

4) Do Not Apply for Too Many Credit Lines at Once

This is a mistake a lot of young people make, especially when they are just starting their first job or have just arrived at university. Unable to decide between credit offerings, or unsure of which they might be approved for they apply for three or four at once. Or they apply for a store card someplace, a fuel card and a couple of credit cards to make sure that “all their bases are covered.”

The thing is though that every time a lender makes a “hard pull’ on your credit it leaves a slight negative mark for up to a year. Applying for too much credit at one time is also a signal to the credit reporting agencies that you may not be the most financially responsible individual in the world.

Be careful about checking your credit through a credit repair or management service as well. While there is such a thing as a soft pull not all companies do that and having them pull your credit report for you rather than requesting it yourself can count as a hard pull that will last for a year.

5) Get Your Kids Started Early

The days when you could give your child a second credit card on your account and it would help them build credit are long gone. But you can help them get ready for a better financial future by teaching them the basics of banking, budgeting, and responsible spending early on.

One of the biggest reasons that people run into trouble when they are young is that they simply did not understand how personal finances work and that their actions may unintentionally damage their brand new credit profiles. If you can provide them with a basic solid knowledge you really will be helping them out.

6) Know What’s On Your Credit Reports

In the UK, three major credit reporting agencies compile information on how well you manage credit and make your payments.

The three main CRAs are:

 

• Experian
• Equifax
• Callcredit

Each of them holds a credit report on every adult and these reports may differ slightly. And you should know what is on each of them. By requesting a copy of your credit reports you will not only get a clear picture of how potential lenders ‘see’ you but you can also check for any mistakes (they do happen) and request they be corrected.  

All CRAs have a statutory obligation to provide you with a copy of your credit report for £2.

You can access the report online or by asking for a written copy. You can make those requests via the following links:

 

• Check your credit report with Equifax
• Check your credit report with Experian
• Check your Callcredit credit report with Noddle (CallCredit)

7) Never Lie About Your Credit Scores

As tempting as it might seem at times you should never lie about your credit scores on any application, not even an application for a flat or a job. It is very easy for people to check the information that you give them and you may even end up in legal hot water if you are caught lying.

 

The post Top 7 Credit Score Tips for Everyone appeared first on LoanPig.

source https://www.loanpig.co.uk/top-7-credit-score-tips-for-everyone/

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Understanding What Creditors See on Your Credit Report

(Updated 5/3/2018)

Your credit report. You know it’s important – you’ve heard it enough after all – but until people actually look at one they rarely understand what lenders see. And if their credit rating – that pesky numerical value that seems to hold some much weight for so many reasons – is less than ideal they often don’t even want to know.

Whether you like it or not though if you are an adult you have a credit report. More than one actually as the UK is served by more than one credit reporting service. And as is the case for many other things in life, what you don’t know could hurt you.

So, what’s really on there? And how much does it matter? Let’s take a look.

Your Personal Information

One of the most important things lenders want to know from the start is that the person they are dealing with is actually who they say they are. While it probably won’t be the only tool they use to determine that pulling your credit report is very helpful, as it should be able to tell them all of the following:

• Your legal name
• Your date of birth
• Your current address
• Your previous addresses
• If you are on the Electoral Roll and if so where.
• Your National Insurance number
• Your employment history

Obviously, if you are applying for credit or a loan you’ll be asked to provide all of that information anyway. The credit report is just a way for lenders to check that you are being upfront and honest.

Credit Accounts

Technically, every form of credit you have ever been granted within the last seven to ten years will be listed on your credit reports. We say technically because some lenders and creditors do not report to all the credit reporting agencies, so one may contain information that another does not.

This information will also be rather detailed in most cases, and is likely to include:

• The type of credit or loan granted
• Who granted it
• When the account was opened
• The amount borrowed, or the amount of credit extended
• An up to date payment history
• The state of the account at the moment (open, closed, paid off etc)

There will also be a list of everyone who has run credit for you over the last two years, including voluntary inquiries (requests you have made) and involuntary inquiries (when a lender or other agency requests your report).

All of this information offers lenders a look at your track record as a borrower, allowing them to make a decision about what kind of risk lending to you presents. If you have had problems in the past, but are now working hard to fix them, all of this can seem a little unfair. But the harder you work at adding positive entries to your credit profile the less the negative ones will matter.

Public Records & Collection History

This is the section of their credit report that many people worry about the most. What’s actually there? Is that time you forgot to pay your Orange bill for a month two years ago really still haunting you? Is that loan you took out with your ex that didn’t get paid on time still causing problems?

The answer is maybe. Usually, the information in the Collection History section will include:

• Bankruptcies
• Repossessions
• Unpaid Debts
• Any convictions for financial misdeeds such as fraud
• Recent applications for credit (for example, if you apply for a short-term loan that requires a credit check this will leave a footprint on your credit report for 12 months – whether you are accepted or not)

What If Things Aren’t Right?

Sometimes – actually more often than you might think – people request their credit reports and, in going through them find, often to their horror, that some of the information is not right. And that it seems like that incorrect information is dragging their credit rating down.

If this really is the case, don’t panic. It can all be fixed. It just takes a little time and effort. Credit reporting agencies draw their information from public records, from creditors and other sources like the Electoral Roll. Sometimes that information is outdated and may even be wrong. But they really won’t know that if you don’t tell them.

To have inaccurate information corrected you will have to provide fairly solid evidence of the ‘truth’. That’s why, as annoying and time-consuming as it can be it’s always a good idea to keep your bill receipts and payment records as well as ensure you are registered on the Electoral Roll where you currently live and that all your current creditors have your most up to date contact information.

Finally, and most importantly perhaps, stop being scared of what might be on your credit report and make sure you know. Get into the habit of checking your own credit reports at least once a year. Doing so is easy, only costs a couple of quid at most and could be a big key to a more secure financial future.

 

 

The post Understanding What Creditors See on Your Credit Report appeared first on LoanPig.

source https://www.loanpig.co.uk/creditors-see-credit-report/

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