What Does Your Credit Report Say About You?

What Does Your Credit Report Say About You?

According to the Bank of England, last year Britons owed roughly ?1.8 trillion in the form of mortgage debt. Another ?213bn was owed in the form of credit cards, loans and overdrafts.

It?s easy to see from these figures that credit is big business in Britain, with most UK adults borrowing money as part of their everyday finances.

As credit plays such a big role in our everyday lives, with new mortgages, secured loans and credit cards being applied for daily, it is vital to lenders that they have a good idea of how we will repay their money.

This is where credit reports come into play. Credit reference agencies - the main ones being Experian, Equifax and Callcredit - keep a credit ?report? or ?record? for every adult in the UK.

Within each report a wealth of information is available, split up into two main areas: public information and credit account information.

Public information is obtained from the electoral roll and includes things such as your name, address, date of birth and marital status. Your employment history, income and any property you own may also be included.

With this information lenders will already be able to get a good idea of how able an applicant will be to repay any money borrowed. For instance, a middle aged business man living in the wealthy suburbs of London is considered considerably more likely to repay a loan than a struggling single teenage mother.

However, such information only gives lenders a partial idea as there are always exceptions to the rule. This is why the second part of the credit record is used.

Within this section of the report, information ? supplied by all lenders - is to be found, regarding any current credit history. This allows lenders to see how much you owe or have owed, and if you repay your debts on time.

For the same reason, information regarding any county court judgements (CCJs), references to debt collection agencies and bankruptcy orders, where applicable, are also found here.

All of this information is complied and used to generate a ?credit score?, unique to every adult. This process know as ?credit scoring? has become much more ?scientific? over the years, as more and more lenders are now using what is know as ?risk-based pricing?.

Instead of simply rejecting an applicant due to a low score, they are instead offered higher rates of interest and are unable to loan larger amounts. On the other end of the spectrum, applicants with a higher score are offered larger sums of money with more desirable interest rates and terms and conditions.

For this reason, it really does pay to make sure your personal credit score is a true reflection of your financial situation, for this reason, everyone is able to view an amend any errors found on their report.

This can be done by contacting the credit reference agencies directly. You can obtain details of your records by making an application in writing and paying ?2 by cheque or postal order, giving details of your last three years? addresses.

The three agencies can be contacted at the following addresses:

Callcredit, Consumer Services Team, PO Box 491, Leeds, LS3 1WZ
Equifax, Credit File Advice Centre, PO Box 3001, Glasgow, G81 2DT
Experian, Consumer Help Service, PO Box 8000, Nottingham, NG1 5GX

National Debt And My Credit

One of the top concerns of many individuals at this point in time is ?national debt and my credit?. Not only is the nation on the whole experiencing economic turmoil at this time, but many other countries around the world are sharing in this financial crisis. It seems that many individuals, companies, and the government on the whole have been a little irresponsible, and now everyone is suffering in one way or another.

If you have any type of credit, you are not only part of the issue but can be part of the resolution as well! Here, we will cover the hot topic of ?national debt and my credit? and provide you with some helpful steps that you can take to ensure that you play your role in the resolution of the issue that is occurring in our economy.

The first and most important step in ensuring that you are playing a positive role in the economy is to ensure that you limit the amount of credit that you use. At this time, it is important to reserve the use of credit for emergencies only. Buying a new television set, or buying a new set of rims for the wheels on your vehicle does not qualify as ?emergencies?. However, home repairs and vehicle repairs do count.

Medical expenses also count. If you watch how you budget the money that you receive through income, you can afford to pay your bills, purchase what you need, and even save towards some of those luxuries that you may want to experience in the future.

The next step in assisting in the economic crisis is to ensure that if you do have credit that you are paying on, you take the steps that are necessary in order to pay your monthly bill. In all actuality, it is best to pay a little more than is expected of you right now. If you fail to do this, you may find yourself with higher interest rates on your purchases, and having a higher bill each month.

Remember, the credit company extended you credit, and now they are very limited in what they can do. However, they will do what they have to do in order to be able to provide for their customers. If it means raising YOUR interest rates and your annual percentages, they will! However, giving back more on your end, may resolve the issue. While this is just a small list of how to aid in the concern of ?national debt and my credit? topics, it is an effective list that should be adhered to.

Lead Your Life More Conveniently With Equity Release UK

Are you planning to purchase a house? If you don't desire to increase your debt by taking bank loans for buying a house, it's good as it won't act as a burden for you in future. However, if the tenure of your service is still long, you must not drop your idea and without thinking more, you should purchase a villa for yourself. Having a long service means you have time in hand to pay the instalment timely. The time when you will retire, you will be left with no debt, but an asset that is your house. Trifling pension during retirement makes life really difficult for the retirees. In such a scenario, the equity release UK deals are available to help them in all possible respect. Equity release providers are available with a number of plans, which they can opt from.

The house that you buy while being in service does not only act as a shelter in your present, but also as a security for future. Going through the different aspects surrounding the concept of equity release UK will let you come across several facts associated with it. Among these facts, the eligibility criteria for applying for these programs are the main thing to consider. Before you apply for the plans of equity release UK, you should make sure to have an ownership of a well-maintained house and a minimum of 55 years age. It is really important to take these factors into consideration otherwise you won't be allowed to apply for these schemes.

The equity release UK allows a retiree to stay in his own house and thereby receive a hefty income in lieu of the same. The lenders never ask the individuals to leave their villa and they set them free to live over there till they desire to reside. This provision makes it one of the most convenient alternatives for the senior citizens. The most significant benefit of enrolling into these programs is that it does not ban the pension that one already receives. To be more precise, the equity release providers offer this income to the old individuals in addition to what they get as their pension.

The amount that the senior citizens are subject to receive after registering to the equity release UK deals depends upon several factors. These factors include - age of the applicant, the value of his property and the interest rate. The more aged an individual is, the more will be his income and vice versa. The better maintained a house; the more will be the earning offered by the equity release providers. Last but not the least is the interest offered. The rate of interest offered varies from lender to lender. Based on the rate of interest, the amount a retiree is likely to receive the income.

Before giving their consent to the applications regarding equity release UK, the lenders pay a formal visit to the villa of the applicants. This is done to find out the maintenance level of a house. Depending upon how maintained a villa is, the amount to be offered to the retirees is decided. The equity release providers or lenders are into a business and they are not supposed to donate money to the pensioners. By examining the asset, they also try to find out whether the house has the ability to repay their debt through sale, in case the old borrowers die without repaying.

Cash Back Credit Card: Earn While You Spend!

Copyright 2006 Edward Vegliante

Cash back credit cards are an excellent way to earn money while you spend! Instead of making purchases with standard credit cards, you might want to consider applying for cash back credit cards because such cards reward you with cash back on every purchase you make! Further, in addition to cash back on all of your purchases, cash back credit cards offer you the opportunity to afford additional savings, in ways you might not have imagined possible.

Cash Back

The obvious benefit derived from having cash back credit cards is the money that consumers get back on every purchase. Frequently, credit card issuing companies will supply credit card users with approximately 5% cash back on certain purchases like those made at drug stores, supermarkets, and gas stations. Additionally, many credit card companies will give 1% cash back on all other purchases. Needless to say, if you use your credit card frequently, such benefits can add up quickly. Further, your accumulated savings can be used for just about anything, but you can really save if you follow the example provided below.

Savings

Due to the fact that you save 1 to 5 percent on many of your purchases made with cash back credit cards, you can find yourself saving quite a bit of money. Let's take a look at the example provided below to analyze the possibilities. If you spend $1000 at supermarkets, $200 at drug stores and $300 dollars at gas stations in three months time, you will have spent $1500. Now consider this:

$1500 x 5% = $75.00

Thus, you save $75.00 for every $1500 you spend with your cash back credit card! Now project such savings over one year's time. For instance, if you spend approximately $1500 every three months at establishments that make you eligible to receive 5% back on your purchases you will have spent $6000.00 for the year. Now, consider the savings:

$6000 x 5% = $300.00

Making Your Savings Work for You

So, what can your savings do for you? Plenty! With the $300.00 you save, you can store it away for a rainy day or you can reward yourself for being so credit savvy and for saving yourself some money! One important thing to keep in mind is that if you carry a balance, the interest being charged is going to cut into any benefit you derive form your cash back. Therefore, to take full advantage of a cash back credit card, it is always best if you are able to pay off your balance each month, or at least not let it run up to high.