Money Advice

Personal Finance 101 - Credit Checks

Mortgage Research News
Figures from the Council of Mortgage Lenders show that in July gross lending in totalled £25.2 billion, with fixed rate deal mortgages are at their most popular for nearly six years.

Nonetheless, "July's growth in .....
Credit cards, personal loans, mortgages and other forms of personal credit are an everyday part of financial life for all UK consumers. Looking at the figures for UK personal debt shows that Britain appears to be addicted to borrowing money and still continues obtaining more from the financial institutions. By the end of 2005 the UK personal debt levels stood at a record £1,148, with 83% of this debt consisting of secured mortgage loans. Due to the nations reliance on credit of all forms, it is extremely important to keep a close eye on your own personal financial history and keep up to date with the official credit check reports which can help prevent fraud, and make the difference between acceptance at a favourable interest rate, or outright rejection just when the money is needed the most.

In the UK there are two main credit reference agencies which hold a wide range of financial information detailing a person’s continually evolving financial history, these are Experian ( http://www.experian.co.uk/ ) and Equifax ( http://www.equifax.co.uk/ ). By obtaining a copy of your report from each of these sources, (as they may contain different information), you can not only check the accuracy of the information stored and look for any potentially fraudulent entries, but you can also request that any incorrect information is amended to prevent possible future credit problems.

Each lender will weigh the information contained in a person’s credit file differently. However there are universal contributing factors which include:

This site is full of articles about credit checks. You'll also find articles about personal finance. Have a browse to see what you can find.

Stretch Your Student Loan
If you’re considering going to university, there is a strong chance that you’re also contemplating taking out a student loan to fund your university expenses. Student loans don’t have to equate to student debt and if you plan your finances, it is possible to get by without student loans and .....
Discover all you need to know about credit checks, and much more on our wonderful information haven.

- Electoral Roll information for a person’s currently registered address.
- Defaults on any financial repayment contracts, such as loans, mortgages, etc.
- Employment history for mortgage, credit cards, loans, hire purchase and finance agreements.
- Any County Court Judgments.
Mortgage And Credit Card Providers
Following on from recent moves in the credit card industry (see “Rate tarts losing ability to cherry pick” http://cashzilla.blogspot.com/ ) to reduce the number of people switching from one financial provider to another, mortgage lenders are now looking to follow suit .....
- The complete amount owed and the number of credit facilities used.
- The number of new credit facilities that have been applied for (both successful and unsuccessful applications).
- The type of credit used.
- Salary details given on the application form.

Lending organisations combine the data obtained through a credit report, along with information acquired from an application form, to produce a credit score. This score represents a measure of an applicant’s likelihood to repay debts and to make any repayments on time.

If an applicant’s score falls below the lenders acceptable risk threshold, or they don't fit an ideal customer profile, then the application may be completely rejected. It is also possible that a low score may result in acceptance, but at a more expensive interest rate than might usually be offered.
Insurers And Life Insurance
Global warming may have been lurking on our horizon for a number of years and historical records of terrorists have existed for thousands of years, but we are coming into a new age where we try and financially protect ourselves against such problems and if we’re honest … we’re struggling .....

Some credit card providers, such as the Asda supermarket chain’s finance services, now provide applicants with a copy of their credit reports with all applications, however, to obtain the best deal it is vitally important that borrowers do some shopping around. When shopping around for credit however, try to obtain as much information as possible prior to making a formal application for credit. Whenever any application for credit is made, a footprint is left on the credit record showing that a search has been made. Credit companies see lots of footprints as an indicator that the applicant may be in severe financial difficulties or even that some form of fraud may be evident. Using one of the various online financial comparison websites, such as Moneynet.co.uk ( http://www.moneynet.co.uk/loans/index.shtml ), enables you to see what is on offer, and what general market rates are available, before any financial commitment or full credit search is required.

Even people who are not looking to obtain additional credit may find a credit report useful for peace of mind, and to ensure that their credit details are not being used for fraudulent applications, or as part of the growing disturbing phenomenon that is identity theft.

UK House Price Increase
Property website Rightmove has released its latest house price index announcing a “Summer sale” for house buyers. The report shows that on average, house prices fell by 1% over the four weeks leading up to 9th July, indicating that the “affordability gap” between house prices and .....
Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.

You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.


Family Finances
Families are becoming an increasingly complex unit when it comes to money management. Parents are working longer hours, couples are spending less time with each other and children are becoming increasingly sophisticated in their material wants and information needs. .....


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