Welcome!

News Feed Item

Clean up Your Credit Profile in 2013

CHESTER, England, January 7, 2013 /PRNewswire/ --


  • MoneySupermarket.com provides advice to consumers applying for credit in 2013

In the aftermath of Christmas 2012's debts, more than one in six* people may be looking to consolidate their debts or take out new loans or credit cards this New Year, according to a recent poll from MoneySupermarket. Yet borrowers should take time to understand their credit file before applying. The UK's number one comparison site offers useful tips for those applying for credit, to maximise chances of being accepted and avoid blemishing credit profiles.

The MoneySupermarket site poll* found of those who are planning to borrow money this year, 43 per cent plan to transfer their existing debt onto a zero per cent balance transfer card, while a third (34 per cent) will take out a loan. A quarter of those needing to borrow (23 per cent) plan to apply for a zero per cent purchase credit card.

Tim Moss, head of loans and debt at MoneySupermarket.com, said: "It is vitally important people understand their credit file before applying to avoid rejection or being offered higher rates than expected. Each lender applies their own criteria when processing an application and it is almost impossible to second guess when applying. Consumers need to be savvy and understand what they can do to minimise the risk of being rejected.

"If you know your credit score is less than perfect, or you don't have much of a credit history, it's not the end of the road as there are steps you can take to improve your rating and increase your chances of getting a loan. Doing a little bit of research and using MoneySupermarket's SmartSearch tool, which matches borrowers with suitable credit card products without leaving a footprint on your credit file, can make all the difference between being accepted or rejected from receiving a loan or credit card in 2013."

MoneySupermarket.com offers the following tips to improve your chances of being accepted for credit:

1. Check the information on your credit report is correct

This is crucial in determining whether or not your application is successful. It's important to understand your credit profile and to check for any errors. If you find mistake, contact the credit reference agency immediately and ask for it to be corrected, as even minor inaccuracies could count against you when a lender uses your credit report to make a lending decision. It is worth checking your credit file with all three credit reference agencies, Experian, Equifax and Call Credit as information can vary. Statutory credit reports can be purchased for just £2.

2. Remember to pay on time

Avoid missing or late payments- paying bills on time shows a lender that you are able to manage your finances effectively, even if it's just the minimum amount. Otherwise you could risk a black mark on your credit score and penalty charges. It's easy to forget so set up a direct debit or standing order to safeguard your payments - lenders like it as they know they will receive money from you every month. If you are unable to make a payment, contact your lender as soon as possible.

3. Watch out for unused accounts- and close them

Financial companies are paying more attention to the total amount of credit available to individuals, rather than just focusing on the amount they owe. It is therefore important to close any accounts you no longer use.

4. Avoid a high balance

Maxing out your card can be taken as a sign of financial stress. Not skating too close to the edge also eliminates the chance of you being charged for exceeding your limit and losing any introductory offers you might be on. Try to remain within 30 per cent of your credit limit.

5. Register to vote

Most companies use the Electoral Roll to combat identity fraud so it is vital you are registered to be considered as a safe bet. Make sure you're registered at your current address, or your application will be declined - even if your credit record is clean. Speak to your local council or sign up online.

6. Prove you have credit history

Demonstrating you are credit active and can be responsible managing credit is essential. Providers assess potential customers on their previous behaviour and will look for signs that you are capable of repaying money. While you don't want to access too much, the trick is to build up your history slowly. It is worth considering opening an account to establish credit history - even if you pay it off in full each month. Ensure you have a bank account and pay your bills on time as this will help to show that you can manage your finances and are a good candidate for credit. If you use a mobile phone then having it on contract and paying it in full and on time with a direct debit to prevent missing a payment can have a positive impact on your credit profile.

7. Stay honest and take action- pay ahead of time if possible

Always complete applications for credit accurately and honestly, lenders will be able to discover lies or half-truths easily and decline your application. If your circumstances have changed- such as redundancy or a divorce, then it's important to say so rather than struggling to keep up credit payments in silence. If you've had a CCJ and it is now settled, make sure the settlement is recorded on your credit file, as they can bring your credit score down considerably. You can place a Notice of Correction on your credit file explaining the background to any arrears. It is never too late to get back on track, clean up your act and get up to date with payments. Providers may also look favourably on those who can pay off loans agreements ahead of schedule.

8. Stop applying and aim for the right targets

If you have been refused credit, obtain a copy of your credit rating but don't keep on applying everywhere else. Each lender search will leave a footprint on your credit profile- rejected applications to several lenders within a short period will show up and may damage your credit prospects. Avoid a scattergun approach and do a bit of research beforehand.

9. Show you are stable and secure

Moving home or switching jobs can impact on the chances of successfully applying for credit. Lenders want to know that you are 'stable and secure' so if you have moved a lot, this could have a negative impact as lenders may see you as a greater risk than someone who has been at the same address or job for a period of time. Having a bank account and a good banking history can also reflect well on your applications for credit.

10. Search Smart

MoneySupermarket has a SmartSearch credit profiling tool to help those looking for the best credit card deals for their circumstances. Anyone identified as high risk will be guided towards a set of products that offer them the greatest chance of being accepted.

*MoneySupermarket webpoll

Will you need to borrow money in the New Year?

  • Yes - I will take a loan (5.5%)
  • Yes - I'll apply for a credit card that offers 0% on purchases (3.8%)
  • Yes - I'll transfer existing debt to a 0% balance transfer card (6.9%)
  • No - I don't have any debts and I don't need to borrow (68.9%)
  • No - I am still paying off current debt (12.8%)
  • Maybe - I haven't thought about it (2.1%)

Total votes: 2,011

Poll ran from 21st December 2012- 4th January 2013

MoneySupermarket.com compares (at 29th November 2012)

  • 130 car insurance brands and 99 home insurance brands
  • 9 broadband providers and 20 energy providers   
  • 30 unsecured loan and 5 secured loan providers
  • 62 mortgage lenders and 27 credit card providers
  • 63 savings providers and 38 current account providers.
  • Over 920,000 mobile phone deals

Our customers

We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.

Our providers

By having considerable volumes of informed customers actively looking for products and ready to purchase, we offer our providers an efficient and cost effective customer acquisition solution across all of our channels. This enables our providers to target their marketing spend in an effective and completely measurable way.

Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.

Our customer commitment

  • We make it easy to find the brands you expect to see
  • We strive to ensure a product cannot be found cheaper by going direct
  • We let you remain in control of your personal data
  • We are independent and impartial
  • We make it easy to switch and save
  • We strive to always show the most competitive product available

For further information contact:
 
Paul Lawler/ Nicki Parry
MoneySupermarket.com
+44(0)787-237-9545 / +44(0)1244-370 318
[email protected] / [email protected]


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix ...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.