Gordon Brown bedded the bankers and took their advise not to regulate our Banking Industry. Duh!  “It’s like God taking advise from the Devil on how to prevent Evilness!”

Your true legacy is that you are an unelected prime minister and an ex-chancellor who regularly claimed to be PRUDENT. Yet you sold our gold reserves when the price of gold was low and you have now left us with the …BIGGEST BUST IN HISTORY and it all happened on your watch. You have wasted the wealth of this country over the past 10/12 years and you have given us the biggest recorded national debt ever and the worst recession since 1921. Our children will still be paying your debt off for many years to come.

The piggy bank is now bust and its time to go Gordon you have failed miserable, you cannot be TRUSTED with our country and its recovery.

Please take Mr. Mandleson who has been sacked twice and wormed his way back into your government with you when you close the door on your way out of number Ten Downing Street.  How did he get a knighthood after being sacked twice?

Mr. Brown do the honourable thing and fall on your sword now rather than be voted out! For a prudent prime minister and an ex-chancellor you were very cavalier with our finances.

How fit are your Finances?

Applying for a new loan or credit card is a competitive business, with the best deals going to the people who have the fittest credit history. If you want to be in the running, you need to remember the old fable and act like the tortoise, taking time to manage your money, rather than the hare who rushes ahead regardless.

This quiz will help you to discover whether your finances are in good shape - and whether you’re a steady tortoise or a scatter-brained hare.

1. You want to change your credit card. Do you:
a) Use a price comparison site to find the best offers and get a quote before applying
b) Check out a few deals and then apply
c) Reply to as many ads as you can because one of them is bound to say yes

2. Your income isn’t stretching as far as it used to, so you:
a) Make sure you’re getting the best deals on your household bills and cut down on luxuries, such as take-aways and nights out
b) Ask friends or family if they can lend you a bit to tide your over and start looking for another job
c) Max out your credit cards - after all, that’s what they’re for

3. You check your credit report:
a) Every now and then - you want to be sure that everything is up to date and accurate
b) Only if there’s a problem with an application
c) What is a credit report?

4. You pay bills and make repayments:
a) On time and in full every month
b) Mostly on time but sometimes struggle to pay the full amount
c) Whenever you can - it doesn’t matter if you miss one occasionally

5. You think you are a good prospect for lenders because:
a) You’re a responsible borrower and live within your means
b) You’ve had a few problems in the past but your finances are back on track now
c) You’ve already got lots of credit accounts so you must be doing something right

6. When they decide what offer to make you, lenders:
a) Take into account your credit history, as well as the information on your application
b) Just use your application form and supporting documents
c) Are only interested in whether you earn enough to cover the repayments
Mostly As

Your sensible and considered approaching to managing money means that you stand a good chance of getting the offers you want but you would benefit from keeping a closer eye on your credit report. You can see your Experian credit report now with a free, 30-day trial of CreditExpert. Checking your report more often will not only help you to stay on top of your finances but also protect you from ID fraud by allowing you to spot any suspicious activity.

Ways to improve your financial fitness:
• Always check your credit report before making a new credit application, to ensure everything is up to date and accurately reflects your circumstances
• Close unused accounts, especially joint accounts held with an ex - their financial problems could affect your ability to get credit so you should de-link your credit reports as soon as you can.
• Protect your identity (ID) - if criminals manage to borrow money in your name it can take months to put right and ruin your credit rating

Mostly Bs

You are a bit too complacent to be a winner in today’s tough credit climate, so you need to do a bit of work to get your credit report in shape.

Ways to improve your financial fitness:
• Always make your repayments on time and in full - if you don’t, the evidence will stay on your credit report for at least three years and could convince lenders that you’re unreliable
• Register to vote at your current address - lenders use this information as a precaution against fraud, to check that you live where you say you do
• If special circumstances, such an illness or accident, explain previous problems, try adding a note of explanation to your credit report

Mostly Cs

If you rush into a credit application now you are likely to be disappointed because you haven’t moved with the times. To have a chance of victory in the race for credit you will need to slow down and give your finances a major work-out. Start your financial training sessions with a look through your Experian credit report - it’s free with a 30-day trial of CreditExpert. This will remind you how much you already owe, show how well you’re coping and whether you can really afford more credit.

Ways to improve your financial fitness:
• Identify which debts are costing you most and devise a strategy for paying them off
• Go through your income and outgoings, set yourself a budget and stick to it -be realistic and build in some occasional rewards
• If you are having problems, talk to your lenders first - you can also get free expert help from Citizens Advice at www. adviceguide.org.uk, National Debtline at www.nationaldebtline.co.uk and the Consumer Credit Counselling Service at www.cccs.co.uk
Your thoughts and comments are very welcome. Just click on the comments button below and leave your thoughts and views.

See your Experian credit report for free with a 30-day trial

Today, things couldn’t be more different. Banks facing the combined effects of the credit crash and recession have tightened their lending criteria so that only the cleanest credit report will qualify you to borrow what you need.

“You may know that a clean credit report is a golden asset but very few of us have the first idea that we could inadvertently be trashing our credit status - and our chances of getting the deals we want,” says Darryl Bowman, director of the credit monitoring service CreditExpert.

Here are some surprising ways that you can damage your credit rating - and what to do about them.

Not knowing what affects your credit status

Lenders use a wide range of data when they decide whether to make you an offer. Information such as your earnings and how many people you support comes from your application. They turn to your credit report to assess whether you are stable and a reliable borrower.

It lists your credit, such as cards, loans and your mortgage, along with your repayment record. You need to check it regularly to ensure that it’s up to date and accurately reflects your circumstances. It’s free to see your Experian credit report with a 30-day trial of CreditExpert.

Look for:

• Minor clerical errors, such as an outstanding balance you know you paid.
• Inconsistencies in the way your address is listed - for example, Basement Flat, Flat B and Flat 4.
• Applications and accounts you don’t recognise.

If you find anything you disagree with, take it up with the relevant lender and ask for it to be correct - be ready to provide proof.

Moving home
You may think that a move is something to celebrate - but it’s fraught with dangers for your credit record.

Remember to:

• Make any big credit applications before you move - lenders prefer you to have lived at the address you give for at least three years and you could lose valuable points from your credit score if you leave things until after you’ve settled in your new home.
• Cancel gas, electricity, phone and cable contracts in writing, at the same time that you tell your bank, building society and other key organisations that you’ve moved. If you forget, the people who move in could run up bills in your name. A single missed payment stays on your credit report for at least three years, while a court judgement will blight your credit rating for six years.
• Redirect your post via the Royal Mail for at least a year. If your mail continues to go to your old address and is intercepted, the newcomers could use it to hijack your identity, open new accounts in your name and leave unpaid bills.

Forgetting to divorce your finances when you split
Every time you apply for or take out a joint credit account, such as a mortgage or even a mobile phone contract, you create what’s known as a financial association. These are listed in your credit report and lenders may check your financial associates’ credit report when you make an application, because their circumstances can affect your ability to repay what you owe. So if your ex gets into money trouble, you could suffer.

Add to your to-do list:

• Agree who will take on what debt.
• Cancel old joint accounts and set up new, individual accounts.
• Tell the credit reference agencies immediately - Experian is the largest - and ask for the financial association to be removed from your credit report.

Not registering to vote

Lenders check the electoral roll as a precaution against fraud, to see that you really live where you say you do.

So, even if you have no intention of voting, you should:

• Cancel any past registration, especially if it goes back some years and several home moves.
• Contact your local council or go online to www.aboutmyvote.co.uk and register.
• Check that your new registration is shown on your credit report.

Having an emergency credit card
Lenders don’t only take into account the amount you actually owe when they decide whether you should be given access to further credit. They look at the amount available for you to borrow.

Before you make an application:

• Go through your credit report and look for unused accounts.
• See if you can roll up several smaller outstanding amounts into a single account - for example, transfer the balances from several cards onto a single card.
• Pay off and close down any accounts you no longer need or rarely use.

Not having any credit accounts
You might think that lenders would love people who haven’t borrowed a penny or have long since paid off what they owe and shut the accounts down. In practice, this means that you don’t have a recent track record that shows you are a reliable borrower - and you could be penalised.

Consider:

• Taking out a credit-building card, using it for everyday shopping and repaying the total, in full, every month.
• Talking to your bank manager and getting a personal reference if you want a loan or find it difficult to qualify for a card.
• Maintaining your account religiously for at least a year, ensuring that repayments always arrive on time, so that you establish your credit credentials.

Making lots of applications in a few months
Never window shop for a new loan, card, mortgage or any other form of credit by making a full application - lenders will check your credit report each time and every check will leave a trace. Other lenders may interpret these as a sign of desperation or even suspect a fraud is being planned.

Instead:

• Do your research in advance - use personal finance websites, newspaper supplements and magazines and go to price comparison sites to discover the kind of deal you might get.
• Ask for a quotation search that will not leave a mark on your credit report that’s visible to other lenders.
• Only put in an application when you’re sure you’ve found a deal that is suitable and affordable.

Your thoughts, experiences and comments are always welcome. You can join the discussion below by leaving your comments.

Your pre-Christmas credit work-out

You spend months planning the Christmas festivities: where to go, which parties to attend, what to wear, which presents you’ll give. Quite how you’ll pay for all of this often gets overlooked in the excitement. As a money saving expert it is important that I highlight how to look after your money and your credit record .

It’s tempting to think that you can always turn to your trusty credit card, bump up a personal loan or take on a new credit deal and worry about working off the seasonal excess in the New Year. In the current economic climate, that may not be possible, as lenders worried by the recession and the rising tide of unemployment limit the number of applications they accept to people with the best credit histories and consider downgrading spending limits or raising interest payments for people who can’t show that they’re trustworthy borrowers.

So this year, it’s time to treat your finances to a pre-Christmas credit work-out. There’s a lot you can achieve in a couple of months - and you’ll enter 2010 in good shape.

Induction

• You need to know how fit your finances really are before you can decide where to concentrate your efforts, so dig out your bills, card and bank statements and go through them carefully. Try to identify unnecessary spending that can be eliminated to create a surplus for Christmas projects.
• Take a look at your credit report - the personal history of your cards, loans, mortgage and other credit accounts, your repayment record and other information lenders see when they decide whether to make you an offer and what terms, such as interest rates and spending limits, to set. It will give you a snapshot of what you owe, how well you are managing - and whether you can justify borrowing any more. You can see your Experian credit report for free with a 30-day trial of CreditExpert.
• Set yourself a pre-Christmas budget. Note down your rent or mortgage, Council Tax, interest and repayments on any loans or cards, utility bills and essential food, drink and running costs. Then add a margin for entertainment and personal treats. What’s left can be saved towards Christmas extras.
• Plan your Christmas spending well in advance, set limits for presents, parties, for decorations and anything else you can think of - and stick to them. If you think you’ll need to borrow to make this a happy Christmas, work out whether you’ll be able to afford the repayments over time. If the answer is no, cut back. Diamond earrings, the latest Wii and a case of Champagne aren’t necessary - they’re an aspiration. Your friends and family will be just as pleased with a less expensive alternative.

Initial programme

• Go through your credit report carefully to ensure that it’s up to date and accurately reflects your circumstances. A single clerical error could damage your chances of keeping the credit limits you have or of opening any new accounts, so if you find something you disagree with you should contact the relevant lender and ask for it to be amended.
• Don’t skip repayments to liberate money for Christmas. A missed repayment stays on your credit report for at least three years, warning lenders that you may not be reliable. You could pay a steep price later, in the shape of higher interest rates or being turned down for credit you really need.
• If you’re thinking about getting interest-free credit for furniture, white goods or electronics ready for family celebrations, don’t apply for several deals within a few weeks or months. Every application leaves a record on your credit report and if lenders see lots of them in a comparatively short period, combined with other information this can suggest that you’re desperate for money or even that fraud is being attempted. Stick to the essentials for now and console yourself with the thought that things will be cheaper in the New Year sales anyway.
• Find the section on financial associations in your credit report. It lists anyone with whom you share a financial connection, such as a mortgage. When you apply for a credit card,  loan a mortgage through a finance lender they may also look at the credit reports of anyone financially linked to you, because their situation could affect your ability to honour the deal. If you’ve split up with a former partner - business or personal - you should always reallocate any debt and close the account(s), then ask the credit reference agencies break the link between your credit reports, or you could suffer if they get into financial trouble in the future.

Advanced programme

• Now you’re ready to work on improving your credit status. One easy exercise is registering to vote at your current address. Lenders use the electoral roll as a precaution against fraud, to check that you live where you say you do. If they don’t find you, you could be asked for additional proof of identity or even get turned down.
• Look out for old or unused accounts that you can live without. Lenders take into consideration the credit you’ve already been granted whether or not you’re using it, so it could be time to say good-bye to that just-in-case store card.
• Ask to add a note of explanation to your credit report if unforeseeable events, such as an illness, explain past problems with making repayments. Lenders will see this and may take it into account in the future. You could also set up direct debits that will prevent you from missing repayments in the future.
• Give yourself a Christmas present by discovering how your new regime has improved your credit status. During a trial of CreditExpert, you can order your Experian Credit Score for only £5.95. It won’t be the same as a score calculated by a lender, as everyone uses their own unique formula, but it will show the impact your credit history has on your chances of getting the deals you want. The higher your score, the more likely you are to get a “Yes” - and enjoy a happy Christmas and prosperous New Year.

Maintenance programme

• Make regular checks on your credit report to monitor your progress and protect yourself against ID fraud - one of the 21st century’s fastest growing crimes. It takes place when a criminal gets hold of enough personal data to impersonate you, max out your accounts and borrow money in your name. Watch out for unfamiliar applications, new accounts you didn’t open, incorrect forwarding addresses or sudden increases in outstanding balances and follow up at once with the relevant lender. It’s free to see your Experian credit report during a 30-day trail of CreditExpert and you’ll also be alerted by text or e-mail if there is a significant change to your credit history that could indicate identity fraud.

Your thoughts, experiences and comments are always welcome. You can join the discussion below by leaving your comments.

Under these circumstances, it’s as important to protect and nurture your credit status as it is to lower your carbon footprint. You’ll find some ideas here.

Money saving expert recommends that you get to know your credit report

Get to know your credit report
Your credit report is the history of your credit accounts, along with your repayment history and other information that helps lenders to decide whether to make you an offer and what terms - such as interest rates - to set.

A great money saving tip is to look after your credit report because if you don’t and you fall into arrears you will find yourself paying more money to borrow money from the bank. The bank access your ability to pay a debt by the way you currently handle your finances now will charge you accordingly.

Lenders look for evidence that you are a reliable borrower who makes your repayments on time and in full and isn’t already maxed out. A clean report that shows you can comfortably manage further borrowing is more likely to get you the deals you want.

• It’s free to see your Experian credit report online with a 30-day trial of CreditExpert
• Check that everything in your credit report is up to date and accurately reflects your circumstances
• Look for any errors and ask the relevant lender to correct them - you’ll need to provide proof

Understand your credit scores

Your credit score - also known as a credit rating - is the key to the offer you’re after.

Finance lenders take items from your credit report and your application and allocate each one a value. The total is your credit score. In general, the higher your score, the easier you’ll find it to get a good deal on favourable terms.

• You don’t have a single credit score, as every lender uses a different formula - some even use different calculations for different products, so you could get two different results if you applied to the same lender for a card and a loan
• Your credit score changes over time, as your circumstances change
• You can get an idea of the impact your credit history has on your chances of acceptance by ordering your Experian Credit Report for £5.95 when you take a trial of CreditExpert

Credit cards
It’s now much more difficult to qualify for the most desirable credit cards. They include the dwindling number with 0% balance transfer - there are just 24 of these available, down from nearly twice that number a year ago. Other popular cards offer 0% on new spending, a percentage of your spending returned as cash back or low interest rates of around 6.8 per cent a year, against a current average APR of more than 17 per cent. If you currently have credit card debts then you will need to keep an eye on your credit report and make sure taht you do not miss any further payments.

The average member of CreditExpert has a credit score of 754, which is fair - but might not be fair enough. To be sure of bagging these cards, you should aim to improve your score until it becomes good and tops 880. If your credit score is lower still, you’ll be restricted to a card designed for people with a poor rating and may be charged in the region of 30 to 50 per cent APR.

• If your credit history is thin or poor, consider taking out a credit card with a low spending limit and repaying the total bill each month - it will hep you to build a good track record
• Cancel that just-in-case card you keep for emergencies before you apply for a new one - lenders take into account what you’re already able to borrow as well as what you have outstanding
• Register to vote - the electoral roll is used to verify your address and if you appear at an old address or aren’t on at all, you’ll be marked down

Never miss a mortage payment

Mortgages
Mortgage approval rates in August were up 81 per cent on the same month in 2008 but mortgage lenders are still cautious because of the potential for people to default.

Two factors are crucial here. The first is having a good credit history and a sizable mortgage deposit -the number of 90 per cent mortgages on the market has dropped from more than 900 in July 2007 to less than 100 today. These deals charge a comparatively high interest rate. In contrast, there are more than 300 mortgages available to people with a 40 per cent deposit, up from just 17 in July 2007. You’ll also pay less interest. You need to be have been in stable employment for at least 12 months and have no adverse credit  history in order to find the best mortgage available for your circumstances.

So it’s time to get saving.

• Never skip a repayment - it will stay on your credit report for at least three years, warning lenders that you could be unreliable.
• If an unforeseen event such as serious illness explains past problems in making repayments, you can add a note of explanation to your credit report
• Check your Experian credit report online before you make an application to be sure that you have done everything possible to make it attractive to lenders

Loans and bank overdrafts
Over half of us have been overdrawn at some point in the last year and 17 per cent of us are always in the red with our bank. Most people wouldn’t regard this as a form of credit but it is - and, like all credit, you’ll get the best deal if you take active control of your finances and work on your credit report.

If you know you’re likely to spend more than you have in your account at some point, you should always organise an authorised overdraft, which will not attract penalties and will come with a lower interest rate than if you simply overspend. Remember that your bank has a good overview of your finances and will not be impressed if it knows you’re struggling to make repayments on existing credit accounts. If you take out extra credit and it believes you have overdone it, you may find any existing overdraft is cut back or you could be charged higher interest.

Loans, too, can be cloaked in other terminology, such as the interest free credit available on many items of furniture and white goods. Don’t jump at the first offer you find - do your research at online personal finance sites, in newspaper supplements and magazines, then visit a price comparison site to find out what deals are out there and what interest you might have to pay.

• Check through bills, bank and card statements before applying for a loan or overdraft to see if you can cut back on your spending and borrow less
• Don’t apply for several loans in the hope that you’ll get one acceptance - or you’ll leave a trail of searches on your credit report that could make other lenders think you’re desperate or suspect a fraud.
• Scan your credit report for suspicious or unfamiliar entries that could indicate you’re a victim of ID fraud - if you find anything, contact the relevant lender immediately
• See your free Experian credit report with a 30-day trial of CreditExpert

Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.

Mortgage Update for rural Britain

For every ten homes sold last month one was a remortgage. Until more mortgages arranged are remortgages each month I very doubt that property prices will drop any further. The reason for the house prices being unreasonably buoyant is due to the fact that for every ten houses sold only six new homes are coming on to the market - this shortage of new homes onto the property market is keeping the price of houses artificially high. It’s the law of Supply and Demand that keeping prices high.

The mortgage market needs to be stimulated in order to encourage homeowners to remortgage and to move up or down the property ladder. This will only happen when lenders who currently have no appetite start to seriously lend to first-time-buyers, homemovers and remortgage borrowers looking for a 90% to 95%. Mortgage lenders will need to also re-evaluate their lending criteria and start relaxing their criteria if they are to increase borrowing and stimulate the mortgage market.

Many homeowners do not feel they need to remortgage in the current economic climate. As they come off a previous high interest rate deal and move onto their mortgage lenders lower standard variable rate (SVR). Complacency sets in with homeowners as they are lulled into enjoying some of the lowest SVR interest rates in many years. We are currently seeing some of the best mortgage rates but only for low loan-to-value mortgages

When interest rates start to rise again in the next twelve to eighteen months there will be a mad panic as homeowners rush around to find a new interest rate deal. Many will be caught on a rising standard variable rate (SVR) as they do not match their mortgage lenders criteria, or they need a high loan-to-value mortgage. Many will have incurred arrears and defaults during the recession due to loss of a job, or a redundancy or a drop in hours and pay.

Others homeowners with out of control debts will have tried to get out of debt by contacting Debt Management companies and charities to easy their situations through a Debt Management plan or an IVA. These homeowners will find themselves unable to change mortgage lenders and will be forced to stay with their current lenders and accept the interest rates offered.

So far all the Bank of England’s quantitative easing has not helped the mortgage market apart from stabilise the banking system. We need savers to start receiving more interest for saving and investing their hard earned money in the banks. Unfortunately a side-effect of this will be an increase in mortgage costs to borrowers.

This will happen when we come out of this recession. The cost of borrowing will starts to rise, workers will demand higher wages, mortgages will become more expensive and savers will start to receive better interest rates for investing their hard earned money; fuel costs and gold will start to rocket and inflation will rise to dizzy heights. This is a truly daunting realisation of the future as we struggle in the future to reduce our government borrowing and try to control inflation.

Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.

Don’t forget to bookmark our blog for future reference. Thank you for stopping by!

What really matters to Finance Lenders

Money saving tipster says if you still believe that eating crusts will make your hair curl and that elephants are afraid of mice, you might also be clinging to some myth about credit - and that could be harming your chances of getting the deals you need when it comes to a homeowner loans, unsecured loan, credit cards, a mortgage or even something as simple as a catalogue or mobile airtime account.

In the current climate, it’s time to grow up and find out what really matters to finance lenders - and what’s as irrelevant as a black cat crossing your path.

Myth 1: Credit reference agencies decide whether I qualify for a deal

Lenders make this decision on a case-by-case basis - the credit reference agency has nothing to do with the decision. It simply collates the information in your credit report and maintains it securely. And it is viewed during the application process.

What really matters is
Your credit report is the history of your credit accounts and repayment track record that lenders check when you apply to them, to see that you’re not over-stretched and repay what you owe reliably. It’s important that it is up to date and accurately reflects your circumstances, so you should always check it before making a new application - you can see your Experian credit report for free with a 30-day trial of CreditExpert.

Myth 2: I’m on a blacklist

There’s no such thing as a credit blacklist. Where you live, your gender, race and religion don’t affect your chances of getting credit either.

What really matters is
Your address does play one important role when it comes to getting credit - providing you’re registered to vote there. Lenders use the electoral roll as a precaution against fraud, to see that you live where you say you do. If you don’t appear or are registered at an old address, you may be asked for further proof of residence or even get turned down, so cancel any outdated registration and contact your local council to register at your current home.

Myth 3: I don’t earn enough to get any credit

The amount you earn isn’t necessarily relevant, although finance lenders do set criteria for each loan, credit card or other product they offer and these could include a certain level of income. If you earn very little, there’s a greater risk that you may not be able to make your repayments, so lenders may charge you higher interest rates to cover potential losses.

What really matters is
It’s important to do your research before applying, so you know that the deal you want matches your circumstances. For example, you’re unlikely to qualify for a prestigious platinum credit card if you’re a penniless student. But lenders are principally concerned that you can afford to repay what you owe and have been reliable in the past. So someone earning £100,000 who has skipped some repayments on a £150,000 mortgage might be turned down, while someone earning £15,000 and paying off a £5,000 loan reliably might be accepted.

Myth 4: I’m marked down because the previous occupant of my home went bankrupt

It doesn’t matter whether a bankrupt or a millionaire lived in your home, or whether anyone else who lives there now has had financial problems or is experiencing money trouble now - unless you share a joint credit account, such as a mortgage or credit card.

What really matters is
Having a joint account creates a link between you and means they’re named on your credit report as a financial associate. When you apply for new credit, lenders may check their credit report too, because their circumstances can affect your ability to make your repayments. If you split up or an arrangement comes to an end, you should always reapportion any debt and close the account - or you could suffer if your former associate has problems.

Myth 5: A discharged bankruptcy or IVA doesn’t affect my creditworthiness

Yes, it does. It stays on your credit report for at least six years from the day it was taken out, even after you’ve stopped paying it off and are no longer bound by the agreement. This may make it difficult for you to get credit or mean that you will pay high interest rates, because finance lenders may fear that you’ll let them down.

What really matters is
A clean credit history that shows you don’t skip repayments and you haven’t walked away from a debt in recent years is a plus point. You have not tried to get out of debt by walking away from your debts.  Missed repayments usually stay on your credit report for three years, so it’s always best to talk to your lender before it gets to that stage and see if you can reschedule payments. Lenders aren’t unreasonable - they know that our behaviour changes over time, so a 35-year-old who missed a few repayments when he was a 20-year-old student shouldn’t have anything to worry about.

Myth 6: I don’t have any credit so I’m bound to get the best deals when I do want it

If you’ve never had credit or have long since repaid everything you owe and closed the accounts, lenders have no way of knowing how you’ll behave in future.

What really matters is
You need to build a credit history before you apply for anything major. For example, you might ask your bank - which knows you - for a credit card with a low sending limit, use it for everyday items and pay it off every month. That way, lenders will be able to see that you’re a sound prospect.

Myth 7: It doesn’t matter how many finance applications I apply for

You might think that only the credit you actually get will count when it comes to your credit score - and lenders are certainly concerned that you could take on more than you can handle. That’s why they look at the amount you could borrow on all the cards and loans you have, rather than the amount you actually owe. But applications have an impact too.

What really matters is
Every time you apply for credit, it triggers a search of your credit report that leaves a record. Other lenders will see this and, if you’ve applied for lots of deals within a few months, finance lenders can suspect a fraud or think you are desperate for money. If you’re shopping around, you should ask for a quotation search, which won’t be visible to other lenders. When you know that you’re going to want several deals within a few months, it’s worth staggering your applications to avoid future problems.

Myth 8: Checking my own credit report will damage my credit status

Only searches by lenders can affect your credit status. You can check your own credit report every day, if you like, and it will have no impact on your credit score.

What really matters is
Regular checks on your credit report help you to take control of your finances. You get a snapshot of what you owe and how well you’re managing, can spot old accounts that you could close down and identify suspicious transactions that could indicate your identity has been stolen and misused. If you see anything you disagree with, you can challenge it with the relevant lender. To see your free credit report online with a 30-day trial of CreditExpert.

Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.

Thanks for stopping by! Don’t forget to bookmark our blog for future reference.

Grandmothers' Finance Tips

The options you may consider are stealing although this is certainly not recommended by finance experts. You could buy ready made meals, shop at your local town market or you could switch supermarkets from the likes of Sainsbury’s to Asda or Lidl. Another alternative would be to switch from a premium brand or manufacturers’ brand to the supermarket’s own brands or their No-frills brands in an effort to save money. Many families could see possible savings of around 15% a year with these changes in their shopping habits.

Grandmothers’ money saving tips

It seems that some of us are taking a leaf out of our grandmothers’ cookbook and boiling up a tasty meal of pig’s trotters or mutton broth? There seems to be a return to old fashion cuts of meats as they have suddenly become very popular. Butchers are reporting that they just cannot get enough cheap cuts of meat like; pork trotters, pigs heads, Shin of beef on the bone, sweetbreads, oxtail on the bone, brisket on the bone etc.

Butchers' cannot get enough Cheap Cuts of meat to sell!

Some of these cuts of meat are favourites amongst the West Indian; African and Chinese communities who rich ethnic culture is now interweaved into the fabric of our society. It seems that many old fashioned cuts of meat have returned to our dinner plates. These changes are not just about saving money it seems that in uncertain times old fashioned tastes can suddenly return the nations menu.

Buying ‘Best before date’ foods

During the last few years there have been market traders and small independent stores who have specialised in selling clearance lines, short-dated and out-of-date stock. These businesses have moved online where they now promote their goods and they are growing in popularity as we all try to save money. Some online retailers have reported ten-fold increases in their businesses like www.approvedfoods.co.uk.

How safe is it?’

All bottled, tinned and frozen foods have a ‘Best before date’ this does not mean that the food is not safe to eat after the date stated. It means that the food will no longer be at its optimum quality and it is still tasty and very edible. Bargain hunters are following the advice given by money saving experts and seeking out online retailers who sell products that have passed their best before date but have not gone off.

What does the Food Standards Agency says?

They believe it is not safe for you to consume perishable foods once they have passed their “use-by date”. However, “best-before date” food will last longer than the date displayed, like frozen, dried or canned goods. Food will be safe after this date, although it may not be at its best. Warning never eat eggs after the “best-before” date, because the salmonella bacteria can start to multiply. For information on out-of-date food visit www.eatwell.gov.uk/foodlabels.

The wholesale supermarket alternative

You may even like to consider applying for a cash and carry or a wholesale supermarket, such as Costco as they offer an enormous range of goods at incredibly low prices. Individual membership is available for business owners and certain occupations like civil service, health care and education workers.

Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.

Finance tips to help you tighten your belt and save money

As a finance guru I am often asked for tips and advice for someone who has just been made redundant. How should they cope with protecting their finances and their credit report? The spectre of losing your job can be terrifying, especially when vacancies are at a record low. But once the initial shock has worn off, redundancy can herald a new beginning - a chance to set up your own business, use any pay-off to clear your debts or find a role that gives a better work/life balance.

The more thought you put into your options, the better you’ll be prepared for the challenges and opportunities you could face. Here are some ideas that could help.

Don’t look back

This is an opportunity to change your life for the better. Imagine what you’d like to do and could realistically achieve, then plan how you can reach your goal. You might want to move abroad or have a hobby that could become a career - a number of people have used redundancy to reinvent themselves as gardeners, artists, electricians or teachers. Other people relish the chance to slow down, taking a part-time or less well-paid job in order to focus on a personal passion, such as charity work or sports coaching. Discuss your ideas with your family - it helps to have their support.

Know your rights

It’s worth taking advice - try your HR resource or union or visit Citizens Advice at www.adviceguide.org.uk. If you’re 22-41 and have worked for the same organisation for two years, you’re legally entitled to at least one week’s redundancy pay for every year you’ve been employed. Older workers get 1.5 weeks pay for every year worked over the age of 41, while younger people qualify for 0.5 week’s pay for each year worked under the age of 22. Tax exemptions may also apply to any lump sum you receive.

Take a good look at your finances

When you make a new start, you need to know your current position and manage your new financial circumstances. Dig out your household bills, bank and credit card statements and go through them carefully to find out where your money is currently going. Then take a look at and start managing your credit report - the personal history of your credit accounts, such as cards, loans and mortgages, along with your repayment record. It lets you see what you’ve borrowed and how you’re coping. You can start managing your Experian credit report free for 30 days with a trial of the online CreditExpert service.

Sign up….

There’s lots of free advice for people who want to change track and acquire new skills. The direct.gov site at http://tinyurl.com/nzawpe is a good place to start. The organisation that is making you redundant may also offer a support package, such as careers advice, CV-writing or counselling. Sign up for all the help you need.

… and sign on

If you don’t have a new job to go to, don’t forget to register at your local Department of Work and Pensions (DWP) or Jobcentre Plus for the Jobseekers Allowance, which will pay you £64.30 a week and ensure that you’re National Insurance contributions don’t lapse.

Cut your costs

It makes sense to save in advance - and before redundancy prevents you changing your credit deals - so go back to your credit report and prioritise the borrowings that are charging the highest interest. You could consider consolidating some debts into a single, less expensive loan or eventually use some of your redundancy payment to target them. In the meantime, look for zero per cent on balance transfers or new spending that could help to tide you over the early jobless months but remember to save or set aside the money you’ll need to repay. Visit price comparison websites to find the best deals on everything from utilities to insurance. It’s also worth searching out lifestyle websites which offer all kinds of money saving tips and frugal living tips. What ever you do get out of debt not into debt.

Invest in your future

Setting up your own business or studying for a new qualification often means borrowing money, so it will pay you to invest some time in cleaning up your credit history and making sure it stays in good shape. This is important because lenders look at your credit report when you apply to them and your chances of getting the deals you want depend on demonstrating that you are a reliable borrower. So manager your credit report to ensure that it’s up to date and accurate, close unused credit accounts, register to vote at your current address and challenge any items you don’t recognise or believe are incorrect. It’s free to see your Experian credit report as often as you like during a trial of CreditExpert.

Don’t bury your head

The sooner you let people know what’s happened, the more quickly you’ll be able to move on. Friends and family can offer support if they know what’s going on. Lenders are the same, get in touch with them and explain your situation - you’ll find a list of contact details in your credit report. They may be able to reschedule your repayments so they are more affordable or even give you a brief repayment holiday or interest freeze. If you miss any credit repayments, ie. credit card payments, loan payments, mortgage payments or any other finance payments then the details will stay on your credit report for at least three years, which could make it hard for you to borrow when life returns to normal.

Stay positive

Remember that redundancy probably won’t happen to you. Unemployment is running at seven per cent. Even so, you’ll be better off and more able to pursue your dreams if you take control of your finances now and lay down plans for the future you’ve always wanted. And if the worst happens, you’ll have a strategy to follow.
Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.

Mortgage Market News

Getting a mortgage is going to be a lot tougher - particularly for people with a less-than-perfect credit history or anyone whose income has previously been self-certified. The money saving expert recently heard the account of a lady who had missed one credit card payment and a council tax payment in the last twelve months. Her mortgage broker was unable to place the new remortgage at 86% loan-to-value. This account would have been unbelievable eighteen months ago!

Two years ago, around 15,000 different mortgages were available. Now, there are only 1,670, with the best deals available only if you have a good credit rating and a large deposit.

The increased regulation of the mortgage market is a result of intervention by the Financial Service Authority (FSA), which wants to crack down on “irresponsible borrowing” as much as “irresponsible lending”.

As a result, mortgage lenders are going to be looking harder than ever at your financial circumstances before even thinking of giving you a mortgage offer.

Prove how much money you earn

The FSA is proposing that self-certified mortgages, where earnings are taken on trust, should be outlawed. As these comprised 49 per cent of all mortgages at the peak of the housing boom, a large swathe of mortgages will completely disappear.

If you are one of the two million Brits who are self-employed or freelance, you are now going to have to arm yourself with proof that you really do earn what you claim. So keep copies of your tax return for at least the past three years to show prospective mortgage lenders.

If you run your financial affairs through a company and haven’t paid yourself a lot recently, get your accountant to prepare accurate accounts to show how much you could take out of the company to fund a mortgage comfortably.

Getting a deposit

While 100 per cent mortgages or those with a high loan-to-property value level have not been banned, they will be a lot more difficult to get hold of - and may be capped in future if the FSA finds their current proposals do not have a “sufficient effect”.

That means you will probably need to find a significant deposit, particularly if you want to enjoy a low interest rate. Generally, the smaller the deposit, the higher the interest you’ll pay - if you are made an offer at all. So get saving. Some people are getting round the deposit problem by getting relatives to help out with the deposit or guarantee part of the mortgage, which means they will be liable if you default on repayments. The best mortgages available today are available for borrowers and first-time-buyers with the biggest deposit or for the borrowers with the lowest loan-to-value mortgage with no credit card debts or any other debts.

Check your credit report annually

Crucially, your credit report needs to be in good order. It details your personal credit history of your credit accounts, such as credit cards and store cards, bank overdrafts, other loans and mortgages. Some credit card and store card providers even detail your last statement balance, how much you have paid off each month and if you are enjoying a promotional rate.

If you have a court judgment, bankruptcy, individual voluntary arrangement or debt management scheme against your name that will also be recorded, as will any financial association you have with someone else through a joint credit account or application. You’ll also find your electoral roll listing - lenders use it to check that you live where you say you do.

Lenders take the information in your credit report into account, as well as your application form and, soon, proof of earnings, when they decide whether to grant you a mortgage and on what terms - so check everything carefully to be sure that it’s up to date and accurately reflects your circumstances. You can see your Experian credit report for free with a 30-day trial of CreditExpert.

Clean up your credit history

It is expected that lenders will soon have to check how much you are spending on holidays, running a car and at Christmas before making a decision, so you need to demonstrate that you are a reliable and responsible borrower.

If you find an error in your credit report, contact the relevant lender and have the entry corrected. That also includes any inconsistencies in your address. For example, if your electoral registration says you live in a flat 4 but a lender has put it down as flat d, get it changed to match your registration.

If you have ever missed a payment on a loan or a credit card debt - details are recorded for 36 months or more - and there was a good reason, such as illness, ask the credit reference agency for a note of explanation to be put on your report.

If you have taken out a credit card for a rainy day, consider closing the account and sending it back. Lenders take into account the total amount of credit available to you, not just the amount you use, when deciding your creditworthiness.

If you are in stable relationship, it’s a good idea to get your partner to check his or her credit report. If you have recently broken up with a partner, make sure any joint credit accounts are closed and any record of your financial association is removed from your credit report. Lenders can check the credit reports of any financial associates when coming to a decision.

Prepare for any Finance application

Making multiple applications leaves a record on your credit report that can, in conjunction with other information, persuade lenders that you’re desperate for money or even planning a fraud, so you need to prepare carefully before applying for a mortgage.

Research the market to identify the most appropriate deal - try a comparison site such as www.lowermybills.co.uk, as well as personal finance websites and newspaper supplements.

If you’d like a better idea of how your application may be regarded, you can also order your Experian Credit Score for only £5.95 during the trial of CreditExpert. It won’t be the same as a credit rating calculated by a lender, as they all use different formulae and take information from your application as well as your credit report, but it will give you an indication of your chances.

It’s free to see your Experian credit report during a 30-day trial of CreditExpert, that’s a free credit report online.
Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.