UK Credit History

CREDIT HISTORY IN THE UK

+ Being tied into any joint form of credit - such as bank accounts, loans or mortgages with someone who a poor credit history, known as ‘financial association’, as this will affect your ability to gain credit. HOW TO IMPROVE YOUR CREDIT RATING IN THE LONGER TERM + If you’ve had debts, you need to show lenders that you can borrow responsibly. In time, this will improve your credit score. + Make your repayments on time and pay off your accounts early if you can. This shows that you’re a sensible borrower. + Use a credit-builder prepaid card - If you have a poor credit history then there are credit-builder credit cards you can apply for. - Be aware that the interest rates charged are much higher than standard credit cards. Typically, you’ll be paying over 30% in interest a year so you must make sure you pay off any balance in full each month. Otherwise you’ll get into debt that you may struggle to get out of and harm your credit score even further. Credit limits on these types of cards are typically low. + Avoid expensive credit repair companies - You may see adverts from firms that claim to repair your credit rating. Most simply negotiate with any companies or provide advise such as lieing to credit reference agencies. For further advice and guidance on your personal finances in the UK it is strongly advised that you seek independent financial advise from an authorized person or body. Your bank can offer you advise and guidance as can an independent financial advisor. You should always ensure that the person providing this advise is FCA (Financial Conduct Authority) regulated to be assured of the quality of advise you are being given. USEFUL WESBITES Financial Conduct Authority http://www.fca.org.uk/

Bank of England – Prudential regulation Authority http://www.bankofengland.co.uk/Pages/home.aspx Money Savings Expert http://www.moneysavingexpert.com/ The Money Advice Service www.moneyadviceservice.org.uk Citizens Advice Bureau www.citizensadvice.org.uk Unbiased https://www.unbiased.co.uk/ Financial Advice https://www.financialadvice.co.uk/ Financial Advisor http://www.financial-advisor.co.uk/

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