Young Adults And Car Insurance
As young drivers enter into their twenties they may become eligible for better insurance rates. However, many drivers who were once on the same policy as their parents stick with the same insurance company when it comes time to carry their own policy. This is unfortunate since there is a very good possibility that another company may offer young drivers a far better deal. Read more
Tags: finance, decrease rates, play, offer, Financial services, rate
Consumers need to be on the electoral register to avoid bad credit rating
February 1, 2008 by admin
Filed under News, News-Credit-Cards
Consumers could receive a bad credit rating if they are not on the electoral register, according to experts. 
Equifax, the credit checking service, said that younger people in particular should ensure they are registered as a poor credit rating could prevent them from being approved for a loan.
Neil Munroe, external affairs director at Equifax, said: “You need to be identifiable, and the electoral roll is still one of the key areas that is used to identify somebody.”
“So you need to make sure you’re on the electoral roll if you’ve not been voting,” he warned.
According to Equifax, when checking credit ratings lenders are also ensuring that the consumer is the person they say they are in a bid to combat increasing instances of identity fraud.
In 2006 the Department for Constitutional Affairs estimated that there were at least 550,000 unregistered voters in London.
Figures from the body revealed that one in four Londoners under 24 were not registered to vote compared with only two per cent of over-55s nationally.
The importance of keeping your credit clean
December 1, 2007 by admin
Filed under Credit Cards
Over the years more and more of us have become reliant on credit for the things that we need in life, whether it is a new home or a new car or whether it is to fund a wedding, and education, or even a luxury holiday.
Most of us would be lost without our credit cards, and the majority of us take the ability to be able to open a current account for granted. Yet, if you find yourself facing severe credit problems you could find all of these things impossible, leaving you to deal with a very bleak and difficult financial future.
This is why it is so important to keep your credit in good shape. Those with good credit can enjoy a far easier financial future, with access to a choice of financial services and products from a wide choice of lenders. People with good credit can get the best interest rates, making it more affordable to take out finance. Whether you are looking for a mortgage, a personal loan, a secured loan, a credit card, a store card, or any other type of finance you will find that having good credit can make a huge difference to the amount you pay on your borrowing – and whether you are even eligible to get the credit that you need.
Your credit can be affected in a number of ways. Firstly, it is important to remember that having no credit rating can be as bad as having a poor credit rating, as it means that lenders have no way of knowing whether you are going to be a viable risk when it comes to taking out finance. Therefore, it is important to kick start your credit as early on as possible. One thing that has a major effect on your credit rating is your repayment habits – those that pay their bills and debts on time, regularly, and for at least the amounts requested will enjoy a good credit rating and access to some great deals on finance.
If, however, you make regular late repayments on your financial commitments, or worse still you default on your financial obligations, you will find that your credit rating rapidly declines, and this is where you will start experiencing problems. Those with poor credit will find that their access to finance is greatly reduced, and many lenders will not take risks on those with damaged credit, particularly in the current economic climate. Those with very bad credit may find that they cannot get any form of unsecured finance, and will have to rely on credit that is secured against their homes – even then the interest rates charged are likely to be very high.
There are other factors that can adversely affect your credit, such as fraudulent activity, out of date information, or mistakes on your credit file. This is why it is advisable to order a copy of your credit report on a regular basis and checking through the information on the file. You may find that there are mistakes and inaccuracies that could having an adverse effect on your credit, out of date information that needs to be updated, or even suspicious transactions that could result in your credit rating taking a knock. If you pick up on anything like this you should contact the credit reporting agency as early on as possible to get it rectified.
You should also bear in mind that a log is made on your credit file each time you apply for finance, and the more rejected finance applications that are logged onto your file the more your credit rating will suffer. Therefore if you are turned down for finance you should resist the temptation to keep on making applications. Instead, try and find out what may have affected the lender’s decision by going through your credit report, and wait at least three months before you make another application.
Related articles:
External links:
- Credit Reports
Every time a customer applies for a financial product such as a credit card, the credit company will consult that customer’s credit file. This file records all their financial activity in terms of credit applications and banking activity. - Credit Cards Designed To Improve Your Credit
Credit cards have become very popular over the years because of the ease, convenience, and flexibility that they provide, and these days there are many different types of credit card available - Applying For Credit Cards When You Have Bad Credit
For those with a poor credit score, getting a credit card is harder. However, there are solutions and we will discuss and offer these in the article. - Using Your Credit Card To Build Credit History
Let’s say you want to buy a house, but you need to get a mortgage to help pay for the house. However, you have no credit history to speak of, so how can you apply for the mortgage to get your dream home?
How To Build Up a Good Credit Rating
June 19, 2007 by admin
Filed under Credit Cards
It is evidently not a good thing to have a bad credit rating. For example, it can limit your borrowing options. The sorts of thing that contributes to a poor credit rating are county court judgments, defaults on payments and bankcruptcy orders. In the case of circumstances such as these, the only way to get credit (loans, mortgages) is through the sub-prime market. Here the borrower is charged high rates of interest to reflect the apparent risk to the lender.
There are two main credit reference agencies who compile credit histories on individuals. These are Equifax and Experian. They take their information from sources such as the electoral roll, county court judgments and the payment of past debts. When anyone takes out a new form of credit it will leave a record which these credit agencies also draw upon. But it is not the credit agencies who make the decision about whether to offer credit to would-be borrowers. It is the lender who makes that decision, based on the information provided by the credit agencies and their own lending criteria.
Under the Data Protection Act, if a lender refuses you credit, it must tell you why. Under the Act, if scoring was used to help the lender decide not to give you credit, then you are entitled to ask for you application to be reviewed. Even it this doesn’t help you to get credit this time, you will be able to see your rating and where it might need improvement. Or it can highlight errors that may be on your record (and they do happen) and you can try to get them rectified.
If you do have a poor credit rating, it is a good thing to work to make it better. Although bankcruptcy remains on a rating for up to six years, a year of good credit practice should return a rating to a healthy state.
To begin with, you should ensure that you pay off your creditors on time. If you do have to miss a payment, tell the creditor and make sure that you make the payment the following month.
Even simple things like making sure you are on the electoral role and completing credit application forms correctly will help to improve your rating. Agencies allow people to explain why they may have had a poor credit performance, and a ‘notice of correction’ can be attached to their report explaining, for example, whey they missed payments.
It is worth buying access to your credit history from one of the agencies to make sure that everything is in order. As an example, if you have had a county court judgment, but have since paid the debt, make sure the payment is recorded on the file. If you have had a bankcruptcy order annulled, make sure a copy of the annulment or order of discharge is sent to credit agencies.
Another way of boosting your rating is to take out a store card and pay off the balance regularly and on time. The rating can be improved quickly by opening a variety of accounts, but make sure you do pay off the debt each month. You can also ask someone you know well (family or friend) with good credit history to co-sign for a small loan or credit card. This also helps your own rating.
It is a bad idea to keep applying for credit if you have already been refused by another lender. A lot of searches on history does not work in your favour. The tip is to ask the lender if you fir the profile of people they give credit to.
Having no credit record can be as bad as having a poor credit record. So if you have no credit record, start to build one up – a good one.
More Information:
Tom Smith
19th June 2007
Biba encourages PPI
February 7, 2007 by admin
Filed under News, News-Insurance
Insurance brokers are being encouraged to include payment protection insurance (PPI) with their products.
The British Insurance Brokers’ Association (Biba) is launching a series of new incentives aimed at attracting brokers to selling PPI.
Biba is offering products with enhanced benefits, a more competitive rating structure and improved commissions.
The organisation says that driving PPI will benefit consumers as they will receive better protection on loans, income and mortgages.
The changes include the introduction of partial cover on stress, back-related and pre-existing conditions, as well as the removal of exclusions relating to Aids.
“We can all see that the distribution landscape for PPI is changing as many existing providers continue to be challenged by the regulator and media to improve their sales processes, cover and cost,” said Eric Galbraith from Biba.
“This recent attention has shaken consumer confidence in buying PPI from non-broker channels and the time is right for brokers to seize their market share. We’re providing our members with the right tools to do this.”
Customers taking out any kind of loan should consider PPI, as it offers protection against any unforeseen changes in your personal circumstances.
Biba has promised to give brokers “whatever level of support they require” and has described the new products as “a win, win scenario”.
Anti loan shark scheme welcomed
January 25, 2007 by admin
Filed under News, News-Loans
A new scheme to tackle loans sharks has been welcomed by the National Consumer Council (NCC).
The organisation is hopeful that by introducing the project, around 200,000 of the UK’s poorest people will receive help.
Hopes have been raised that some of the most vulnerable people will now be able to escape the vice-like grip of illegal lenders.
“Removing illegal lenders from these communities not only frees their victims from threats and intimidation, but can help people find ways to borrow more cheaply,” said Claire Whyley, deputy director of policy at NCC.
“It’s vital, though, that these new projects are supported by efforts to make more affordable credit widely accessible in poor communities.”
Large numbers of people turn to loan sharks because they have such a bad credit rating that they feel they will not be given a loan by a reputable lender.
However, loan sharks are not restricted by regulation and often charge extortionately high interest rates.
As a result, many borrowers find themselves in an even worse financial situation than before they borrowed the money.
