IMPROVE YOUR HOME – BY IMPROVING YOUR CREDIT SCORE
Find out how with the Equifax Credit Score Test
London, 27 March 2007 – The arrival of British Summer Time, combined with a continuing rise in house prices, is likely to see many people opting for home improvements rather than a home move in the next few months. But major improvements, like a new kitchen or bathroom, usually need an injection of funds and many consumers are unaware of what they need to do to get the best possible rate – whether it be for a credit card, an unsecured loan or further advance on their mortgage. Now, leading online credit information provider, Equifax, is providing the inside knowledge to DIY-ers to help them get the best credit deal.
“Do it yourself isn’t just about home improvements”, confirmed Neil Munroe, External Affairs Director, Equifax. “The same philosophy can also be applied to credit information and credit scores. Many consumers see the credit application process as a complete mystery – something over which they have no control. But that doesn’t have to be the case and that’s why Equifax is lifting the lid on the system to help consumers get the best deals.”
Lenders make checks with credit reference agencies to see whether an applicant has kept up to date on repaying their credit. Lenders also use a "credit scoring" system to decide whether or not to lend to consumers – and in some instances – at what price. Basically, the better an individual’s credit score, the better the rate they will get, helping them take advantage of the best deals.
The Equifax credit score works by giving an individual points, based on how they compare with people who pay their credit on time. The more favourably someone compares to the national average, the better their score. Consumers will also be told how likely it is that they will be able to get a loan based on their score. And a 'traffic light' signal helps consumers identify information that might be damaging their score.
“And it is important to note that all is not lost for consumers who score poorly because Equifax offers online advice to people looking to improve their overall credit score” confirmed Neil Munroe. “It could be something as simple as not being registered to vote that is holding someone back, but even if it’s something more serious, our expert advice is available to help consumers gain control of their finances.
The Equifax Credit Rating™ dispels the mystery of credit scores, which Equifax research has revealed remains one of the key concerns for consumers. What makes the Equifax Credit Rating™ so powerful is that it is based on all the credit information used by lenders when assessing applications, and it is available online instantly, providing consumers with a valuable insight into their credit rating.
To obtain your Equifax Credit Rating™ instantly online go to www.equifax.co.uk. The price is £14.95.
THE EQUIFAX CREDIT SCORE TEST
To help consumers work out how they might score when next applying for credit, Equifax has developed the Credit Score Test.
Questions |
Yes |
No |
N/A |
Are you registered to vote at your present address? |
10 |
0 |
|
Do you have at least two active credit accounts? Such as a credit card, store card or loan. |
10 |
0 |
|
Are all your credit account payments up to date? |
15 |
0 |
0 |
Have you missed payments on your credit accounts in the last 2 years? |
0 |
10 |
0 |
Do you have any Count Court Judgments or been declared bankrupt? |
0 |
25 |
|
Have you ever defaulted on a credit agreement? |
0 |
25 |
|
Have you applied for more than two items of credit in the last six months? |
0 |
5 |
Scorecard |
|||
Excellent - Your score shows that you would be a strong candidate for credit |
90-100 |
||
Good - Your score shows that you have a good chance of being granted credit |
70-89 |
||
Fair - Your score shows you may have some problems obtaining credit; |
50-69 |
||
Poor - Your score shows you may have considerable difficulties in obtaining credit |
0-49 |
TOP TIPS TO IMPROVE YOUR CREDIT SCORE
- Ensure you are registered on the Electoral Roll.
- If possible make more than the minimum payment on credit agreements every month. You will benefit by paying back your debt quicker, paying less in interest and you will build a positive payment history.
- If you have paid any County Court Judgments, make sure the settlement is recorded on your credit file. If not contact the court to get confirmation details and inform the credit reference agencies.
- If you have been refused credit, obtain a copy of your credit rating. But DO NOT carry on applying elsewhere. Each search by a lender will leave “footprints” on your credit file, this may look like you are over-stretching yourself financially.
- If your circumstances have changed then say so. You can place a Notice of Correction on your credit file explaining your financial situation, which a lender will review when accessing any credit applications you make. For example if you were made redundant or have recently divorced and have fallen behind on credit repayments.
- Avoid carrying a balance that is more than 30% of your credit limit (creditors may view it as excessive debt and that you may not be able to keep up with repayments).
END
