| | MARTIN'S QUICK BRIEFING: For more tips, alerts & awful puns, follow Martin on Twitter 15 things you NEED to know about credit scoring
Boost your credit score for mortgages, cards, energy bills, mobiles & more We now live in a rate-for-risk world. The more creditworthy you are, the better deals you can get, whether it be mortgages, contract mobile phones, bank accounts, monthly car insurance or even how you pay for your energy bill.
So it's time to add 'manage my credit file' to your to-do list. To help, I've written my 35 Credit Score Boosting Tips, which anyone about to make a big application should read, but here are the top 15 that EVERYONE should know...
| 1. | You don't have a universal credit rating; there's no blacklist. Each lender scores you differently & secretly to see if you meet its requirements as a profitable customer. Those whose history shows they're unlikely to repay at all are unlikely to be profitable, but good risks can be rejected too, if the lender thinks you won't make it money. Full info in Credit Scoring Debunked. | | | | 2. |  Boosting your credit score's like going on the pull. There are lots of things you can try to do to make yourself more attractive to lenders, but there's no universal fix. Some people like a girl (or guy) in lots of make-up, some don't, and equally, different lenders are looking for different things. Yet below are some simple cosmetic changes that work for most:
a) Evidence of stability's good. Put a landline, not mobile, on applications.
b) Don't withdraw cash on credit cards. It's expensive & evidence of poor money management. See What About Withdrawing Cash Abroad?
c) Never miss or be late on repayments. Use a direct debit to be sure, even if just for the minimum (then you can repay more on top).
d) Check for address errors. An old technically active but unused mobile registered to your old address could even cause a mortgage rejection.
For full info on these and more, see Tips to Boost Your Credit Score. | | | | 3. | Use a bizarre trick to (re)build your creditworthiness. Credit scoring is all about trying to predict your future behaviour based on your past. So rejection's likely if your history makes you look a bad credit citizen. Yet equally, those who've never had credit get rejected due to a lack of data. After all, would you lend to someone you knew nothing about?
The bizarre solution is to get a credit card, just to do around £50 a month of normal spending on it (never withdraw cash), then repay IN FULL each month so there's no interest. Do this preferably by direct debit so you're never late. After 6mths to a year, you'll start to look a better credit citizen.
How do I get a credit card if I've poor credit? That's the catch-22. Yet specialist credit (re)build cards target this market. Use our Eligibility Calc to show which you're most likely to get. Here are the least-worst buys...
If you can't get those, the last resort option is the Cashplus Creditbuilder prepaid card which costs £5/mth. | | | | 4. | When did you last check your credit file? Get PAID to do it. Even small errors on your files at the three credit reference agencies - Experian, Equifax & Callcredit - can kibosh applications. Check them all line by line at least once a year, plus before any big application, focusing on the one that the lender you're applying to uses.
You've a legal right to check them for £2, but there's a loophole which means right now you can get paid to check your credit files. | | | | 5. | Get on the electoral roll. If not, getting credit's tough, as it can cause ID and tracing issues. Don't worry about getting lots of junk mail though - you can opt out of the 'open register' element, which stops this but still means you count for credit scoring purposes. For full info on how to check if you're on it, and what to do if you're not, see our Electoral Roll Help. | | | | 6. | You need to know what they know about you. Lenders assess you with three key pieces of info:
(i) Your application form tells them your salary and more.
(ii) Any past dealings you've had with them. So a lender you've banked with has more info on you - sometimes good, sometimes not.
(iii) Your credit reference files, which include electoral roll info, products you have, court judgments & more. Regularly check for errors (see point 4).
As for whether they know your speeding points, criminal records and more, see our full list of What Credit Reference Agencies Know About You. | | | | 7. | Avoid lots of applications in a short space of time. Almost every card or loan application leaves a footprint on your credit file. Too many of these, especially in a short space of time, hurt future applications - meaning the system is anti-shopping around, as if you get rejected or are offered a worse rate than that advertised, you'll want to apply elsewhere.
So space out and prioritise applications. Eg, if you're due to apply for a mortgage, don't apply for minor things like cashback credit cards in the week before. Yet there's another solution too... | | | | 8. | Find out for free what cards and loans you'll be accepted for. Our Eligibility Calculators use a soft search (you see it on your file, but lenders don't, so there's no impact) to show your % odds of acceptance, so you can home in on the right card, minimising applications.
It can be hugely powerful, eg, Kelly said: "Used the balance transfer eligibility calc and got 35mths 0%, shifted £11,500 from up to 29.9% APR" - saving her £4,600 interest. Each of the links below shows your odds for almost all the top pick deals in each category (a few providers don't allow us to do it).
Eligibility Calculators for...
0% Balance Transfer | Cheap Loan | Cashback Credit Cards | 0% Spending
Cheap Spending Abroad | Credit Rebuild Cards
Many ask me at what percentage it's worth applying. That depends on how important that product is to you, eg, 60% means 6 in 10 people in your situation will be accepted - pretty decent odds. A story should help...
I recently sat with a MoneySaver whose focus was costly credit card debts & poor credit history. The calc showed zero chance of getting any balance transfer except Halifax, which was just a 20% chance. She asked: "Is there any point?" I explained 20% is better than nowt, and the worst that can happen is she wouldn't get it. She applied and got a 26mth 0% card with a £1,500 limit. | | | | 9. | Ensure you time it right. Major problems like CCJs, defaults or bankruptcy stay on your file for 6 years. Applications for products stay on for 1 year. So if they'll soon lapse, it can be better to wait before applying. | | | | 10. | You don't need to pay to find your credit score. I often get tweeted by people worried that "my Equifax credit score has dropped". These scores, which are sold to you by Experian and Equifax for up to £14.99/mth (and give you a score of up to 999), are just a loose indication of your risk profile, as each lender scores differently and uses far more info than just your credit file. For a full assessment, read my What Experian or Equifax's Credit Score Really Means. | | | | 11. | Get unfair defaults removed from your file. If there's a default on your file that isn't fair (eg, you didn't pay a catalogue loan as it failed to deliver the goods), it's important to get it removed - or it can kibosh most future applications. This can be tricky, so see our step-by-step Unfair Defaults Help, and even if it's fair, see how to Mitigate the Damage From Defaults.
| | | | 12. | Beware payday loans, they can kill mortgage applications. They're dangerous in their own right, but some mortgage underwriters simply won't lend to anyone who's had one. See our free First-Time Buyers' or Remortgage Booklets for full help on mortgage acceptance. Related: Payday Loan Help | | | | 13. | See if you're due £100s back from Experian's CreditExpert. If you pay or have paid for Experian's £15/mth credit monitoring service, we believe you may have been unfairly sold part of it. Our Credit Expert Reclaiming guide shows how to get the cash back. We've been flooded with successes, eg, Dee: "I sent Experian the template letter and received a payment of £243.59." | | | | 14. | Beware joint mortgages, loans and bank accounts. It's not whether you kiss, live together, hold hands or are married that links credit files. It's simply whether you have a joint credit agreement (mortgages, loans, bank accounts and sometimes utility bills - joint credit cards don't exist).
This means their credit history can be looked at when assessing whether to lend to you. If theirs is bad, avoid any joint products. If you're now financially independent from an ex, see How to Delink Your Finances. | | | | 15. | Be consistent, even on different applications, to avoid fraud scoring. Fraud scoring is credit scoring's secret cousin. Among other things, these specialist agencies map how consistent your applications are, even to totally different firms. So be consistent if you've a couple of mobiles or job titles - use exactly the same one every time you apply. See full Fraud Scoring info. | | | |
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| Wed 24 Jun 2015 |
Pound hits 7yr high against euro - £1 buys €1.41
Take advantage with a 2HR FLASH Travelex sale (incl airport pick up) and ways to get more bucks for your bang A year ago, £1 bought €1.24. This year, on occasion the official rate's beaten the €1.40 barrier. And this week, sadly due to the Greek crisis, it's there again. Here's how to max the tourist rate (also see Martin's Should I buy euros now?)... More info in our 15 cheap travel money tips guide and also see Martin's Going to Greece? video. back to top ↑ |
| EE customer? Its 'free' £20 portable mobile charger is back - go quick. Available for contract and PAYG mobile as well as broadband customers. The deal was paused due to over-demand. Full info: EE power bar Starbucks 2for1 vch. Ends Fri. It's not too taxing, just print voucher and use on hot or cold drinks. Starbucks voucher Ends Sun. Earn 5% interest & a free £100 on top. Apply to switch to TSB's* Classic Plus account specifically via this link by Sun and you get £100. The account pays a huge 5% interest if you're in credit but only on up to £2,000 saved, so it's a corking deal for smaller savers. See how it compares in the 10 hottest bank accounts. The 10 changes I'd make to Britain. Read Martin's 10 changes to Britain and then suggest your own. Vax up to 68% off steam cleaners/pressure washer sale. MSE Blagged. Ends Fri. Early access to six-item sale with our codes. Eg, 2in1 steam cleaner £31.99 (was £99.99), 2000w pressure washer for £99.99 (was £249.99). Vax sale |
New 19mth 0% borrowing AND balance transfer - top all-rounder card
Longest-ever 0% all-rounder card. ONE application, TWO deals. Wins if you've existing debt & need new borrowing Most credit card deals either allow you to shift debt to them cheaply or spend on them cheaply. So having one card that does both means one fewer application hitting your credit file, protecting your creditworthiness. - New. Longest-ever 0% all-rounder. Halifax* (eligibility calc) & sister bank Lloyds* (eligibility calc) cards both offer up to 19mths 0% on spending - and the same on debt shifted to them from other cards, but for a one-off 1% fee. If you already have debt on another card from one of those banks, choose the other one.
- 36mths 0% JUST for balance transfers. Barclaycard* lets newbies shift debt to it for up to 36mths 0% for a 2.39% fee, Lloyds* is up to 32mths 0% for a 1.69% fee, Tesco* is 18mths 0% no fee. Clear before the 0% ends or they jump to 18.9% rep APR (Tesco 20.9%). Which'll you get? Use the Eligibility Calc. Full info: Top Balance Transfers
- Or 21mths 0% JUST for new borrowing. Halifax* & Tesco* give 21mths 0% spending. Clear them before the 0% ends or they jump to 18.9% rep APR. Which'll you get? Use the Eligibility Calc. Full info: Top 0% Cards
- The Golden Rules. It's not just about picking the right card, it's about using it the right way...
a) Don't get new borrowing unless you have to. If so, always budget & plan to repay before the 0% ends.
b) Never miss min monthly repayments, or the bank can end your 0% deal and charge far more.
c) Clear the card or transfer again before the 0% ends, or the rate rockets to your card's standard APR. back to top ↑ |
| Free sausage roll at Greggs. Ends Sun. Available for the first 6,000 per day. Greggs 'I got paid to have a free lunch'. Read how MSE Anthony stuffed himself for nowt in his mystery shopper blog. Ends Tue. Hot home ins deals - 'free' Karcher pressure washer or £80 M&S vch. MSE Blagged. Special links get you freebies: a) Age UK, M&S vch* (£35 contents/buildings, £80 combined) or Karcher Pressure Washer* (RRP £80) on combined cover b) Together Mutual, £80 M&S vch* on combined cover. Should arrive within 120 days. Warning: we're not saying they always win, compare with results of Gocomp*, CompareTM & MoneySup*. See Cheap Home Ins. 2x specs £25 code + 'free' £10 tint. MSE Blagged. Use £30 off code on 2for1 offer. Full details in Glasses Direct deal. Warning: Twitter now automatically plays videos, so it eats mobile data. Full info incl How to turn it off. |
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Show Best Buys
Two petunia hanging baskets £16 del (norm £23). MSE Blagged. 1,200 available. See Jersey Plants Direct. Ends Sun. FREE insulation worth £700 plus £25 J Lewis/Argos voucher. MSE Blagged. Anyone in a suitable home (sadly not NI) can get free loft & cavity wall insulation and a £25 J Lewis/Argos etc gift card. See Free Insulation. 30% off shoes incl Clarks, Nike, Adidas. Code for Brantano site, incl kids' shoes & up to 50% off sale. Shoe code Ends Sun. Tesco points double-up. Every £5 of Clubcard vouchers gets a £10 voucher valid in-store & online on items incl toys, electricals, BBQs & gardens. Reclaim lost Tesco points & boost 'em. |
57 baby MoneySaving tips
No, we don't mean ickle savings, but savings on ickle ones - whether you're planning, preggers or pram-pushing While you can't put a price on the love you feel for tiny ones, you certainly can on nappies, baby food, prams & more. It'll never be truly cheap, but our 57 Baby MoneySaving Tricks can help keep costs down. Here's 10 for a (new) beginning...  1. Grab a wee saving. A nifty nappy checker tool instantly uncovers the cheapest place to buy, but cheap reusables can cost even less, and they're not necessarily what you think.
2. Protect your family's finances in case the worst happens. One in 30 children lose a parent before they're 18; financial problems can add to the grief. Full help in Cheap Life Insurance.
3. Are you due £1,000s for childcare? Urgently check childcare tax credit & childcare vouchers.
4. Get £15 off £60 baby goods. Utilise an Amazon Family scheme trial to bag a discount.
5. What NOT to buy. From buggies to teeny Ugg boots, parents are deluged with ads - forumites share what not to buy.
6. Who has parental responsibility? If you die, responsibility for your kids goes to anyone with 'parental responsibility'. Mothers automatically have this, fathers may need to apply. See parental responsibility.
7. Plan to have more? Buy gender-neutral clothes (eg, green, yellow or white) and reuse.
8. "I saved £260 on dental work". If you're expecting or have had a baby in the last year, you get free NHS prescriptions and dental work. MSE Jenny says: "I saved £260 on dental treatment, as I had a checkup the week before it ran out. Woo woo!"
9. Don't be afraid to ask for help. There are special helplines for breastfeeding, single parents and more.
10. Bag secret baby discounts. Early Learning Centre, Boots and others have hidden baby discounts.
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| Kids' book sale incl Guinness World Records £5, SpongeBob £1, Horrible Histories £1. Starts 9am Wed. Min £13 spend (incl deliv). Stock limited. Plus teachers' books from £3. Full details in the Scholastic sale. SUCCESS OF THE WEEK: (Send us yours on this or any topic)
"I recently downloaded two copies of your template letter to reclaim PPI. One's for a 1997/98 loan for which I had no paperwork, the other for a mortgage I had from 2002 for a few years. Within four weeks I had offers of £1,800 and £2,200. Thank you so much for your help." Body Shop 40% off code + 'free' £3.50 hand cream on £10 spend. Ends Tue. Body Shop Butlin's £25 off code. MSE Blagged. Valid for 3+ night stays in family rooms in 2015. Butlin's code
Show Best Buys |
| Show Vouchers and Top Deals |
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 CAMPAIGN OF THE WEEK
How's your mobile/wi-fi on trains? The Government wants to know how they can be improved on board. It's looking at better wi-fi on trains, mobile masts along the railway and other ways to provide better coverage. What's important to you? Is no wi-fi a no-no or do you just want to be able to make calls? Tell it what you think by 10 July or have your say in the MSE forum. MONEY MORAL DILEMMA
Should I return a voucher I was sent by accident?
This week's MoneySaver who wants advice asks... I was recently accepted for a bank account that offered a gift card as a joining incentive. It sent me two by accident. I don't know whether to notify the bank or spend them both and hope it doesn't notice. Enter the Money Moral Maze: Should I return a gift card I was sent by accident? | Suggest an MMD | View past MMDs back to top ↑ |
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Martin's blogs | Martin's appearances (from Wed 24 June onward) Thu 25 Jun - GMB, ITV, Deals of the Week, 7.40am.
Fri 26 Jun - This Morning, ITV, Martin's 90 Second Savers, 10.30am.
Mon 29 Jun - This Morning, ITV, Money Monday, 10.30am.
Mon 29 Jun - Consumer Panel, BBC Radio 5 Live, 12noon. Subscribe to podcast. |
MSE team corner Team blogs:
How we're helping make Parliament more "friendly" Regular team appearances: Fri 26 Jun
BBC Radio Manchester, 4.50pm | Discussion of the week Proms. What's that all about? In recent years, the concept of the 'prom', (a pimped-up version of the familiar school disco), has become more prominent in the UK. However, the costs can quickly pile up. Join the Proms. What's all that about? discussion and share your experiences, as well as any MoneySaving tips you've picked up. | Cheap travel money |
This week's poll: Do you use travel insurance? We believe travel insurance is a necessity for holiday travel abroad. Do you risk going without it? For more help, see our Cheap Travel Insurance guide. | Poll results How many jobs do you have?
The recession may have hit in 2008, but times remain difficult for a lot of people. We found that 22% of you have two or more jobs. The majority (60%) have one job, while 18% don't work at all. 9,741 voted. See the full results. |
Question of the week Q: I have an annual travel insurance policy that expires in August, but a trip in October which I need to cancel. Am I still covered on my insurance, even though the trip is after the current policy end date? Carri, by email MSE Rebecca's A: Normally in these circumstances you will be. When deciding if a claim will be paid out, most insurers will base their decision on the date you cancel the trip, NOT the date of the trip itself, but always check the small print. Yet assuming so, that means make sure you cancel before August - if you got a policy after that, because you knew you would have to cancel, that could invalidate it. More tips in our Travel Insurance guide. Please suggest a question of the week (we can't reply to individual emails). |
 Nick's free game of the week: Brawlin Sailor |
As luck would have it... That's it for this week - but before we go, have you ever found money you were sure you'd lost? One of our folks at MSE Towers recently got a refund from a bank after leaving cash in an ATM slot – NINE years earlier. We hope you save some money, Martin & the MSE team |
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What you need to know This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances - and remember we focus on rates not service. We don't as a general policy investigate the solvency of companies mentioned, how likely they are to go bust, but there is a risk any company can struggle and it's rarely made public until it's too late (see the section 75 guide for protection tips). We often link to other websites, but we can't be responsible for their content. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. Please read the Full Terms & Conditions, Privacy Policy, how this site is financed and Editorial Code. Martin Lewis is a registered trade mark belonging to Martin S Lewis. More about MoneySavingExpert and Martin Lewis What is MoneySavingExpert.com?
Founded in February 2003, it's now the UK's biggest consumer help website with more than 10 million people getting this email and about 13 million using the site every month. In September 2012 it became part of the MoneySupermarket Group PLC. Its focus is simple: saving cash and fighting for financial justice on anything and everything. The site has over 80 full time staff, more than a third of whom are editorial – researching, analysing and writing to continually find ways to save money. More info: See About MSE Who is Martin Lewis? Martin set up and runs MSE, and still writes this email each week (unless it says so). He's an ultra-focused money-saving journalist and consumer campaigner with his own ITV prime-time show The Martin Lewis Money Show and weekly slots on Radio 5 Live, This Morning and Good Morning Britain, among others. He’s a columnist for publications including the Telegraph, Sunday Mirror and Woman magazine. More info: See Martin Lewis' biography What do the links with a * mean? Any links with a * by them are affiliated, which means get a product via this link and a contribution may be made to MoneySavingExpert.com, which helps it stay free to use. You shouldn't notice any difference; the links don't impact the product at all and the editorial line (the things we write) isn't changed due to it. If it isn't possible to get an affiliate link for the best product, it's still included in the same way. More info: See how this site is financed. As we believe transparency is important, we're including the following 'un-affiliated' web-addresses for content too:
Unaffiliated web-addresses for links in this email aquacard.co.uk, barclaycard.co.uk, capitalone.co.uk, halifax.co.uk, fairfx.com, tsb.co.uk, lloydsbank.com, virginmoney.com, postoffice.co.uk, santander-products.co.uk, tescobank.com, google.co.uk, confused.com, moneysupermarket.com, directline.com, aviva.co.uk, admiral.com, bank.marksandspencer.com, sainsburysbank.co.uk, ageuk.org.uk, togethermutualinsurance.co.uk, firstdirect.com, directsavetelecom.co.uk.
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