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]


SOURCE Moneysupermarket.com

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
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
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, will discuss 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 effi...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...