Service Pay |
 |
CREDIT CONCERNS
Service personnel are sometimes refused credit because of their mobility but some firms give greater 'weight' to changes of address than others. If a computer check turns down a BFPO address, this can sometimes be overcome by asking for a manual check.
"Many lenders use credit scoring systems which allocate points to various pieces of information given on your application form, such as your age, your occupation and whether you own your home. These points are added together to produce your credit score. This helps the lender predict whether you are an acceptable risk. Different lenders have different systems and pass marks, so you can be turned down by one but accepted by another. Your credit score is not part of the file kept on you by the credit reference agencies. Lenders do not have to tell you exactly why they have turned you down, but they should give an indication of the reason." Office of Fair Trading 27 April 2001 http://www.oft.gov.uk
Some people have great credit files - a real asset to them - but others do not. Credit files are used not just to assess your credit risk, but also when you apply for some jobs, or when you seek to rent a property.
If you are looking for credit repair advice, please be careful!
If you are looking for credit repair advice, please be careful when dealing with companies that claim they can 'clean up' your credit history. You'll find the ads in newspapers and magazines and even on the TV or the radio. You can sort out your credit file yourself or with expert help. You do not need to pay for credit repair advice.
You can get free advice about County Court Judgments, bankruptcy, defaulted accounts, other arrears, how to sort our your debts and advice on the contents of your credit file from the National Association of Citizens Advice Bureaux (NACAB) at http://www.nacab.org.uk.
Help on Improving Your Chances of Getting Credit. ('Equifax' one of the UK's 3 credit reference agencies has provided this information).
There are a number of simple steps an individual can follow to help them be viewed more favourably by a potential lender. A lender will want to ensure that the individual will be able to meet the terms of the credit agreement they take out. Demonstrating a stable and responsible lifestyle is often a good indicator for lenders, Equifax therefore suggest the following:
Ensure you are registered on the Electoral Roll. A lender will want confirmation and proof of the address details you have provided on your application form - the Electoral Register will confirm this.
If you have recently moved and are not yet registered on the electoral roll you can apply to your council to be added to the register at any time. This information will then be forwarded onto the credit reference agencies. In the meantime, you may wish to explain to a lender why you are not on the electoral roll at your current address by requesting a Notice of Correction to be added to your credit file. This is a 200-word statement, which allows you to comment upon the information, held on your credit file and will enable you to explain to a lender why you are not currently on the Electoral Roll.
When applying for credit take along old bank statements from where you have previously had credit or some documentation that will demonstrate how finances have been managed in the past.
If you are able to obtain your credit history from previous countries that you have served in, then show this to a potential lender.
When applying choose a lender where you can apply face to face.
Plan ahead - know what out-goings you will incur on a monthly basis by ordering a copy of your credit file - this will give you an overview of the existing credit agreements you already have and will help you understand how you may be viewed by potential lenders.
If you are issued with a County Court Judgment it can be removed if you pay it off within one month of the date the Judgment was issued. If you pay off the Judgment after the first month, this will show on your credit file as satisfied and is a good indication that your financial circumstances are improving. However, the Judgment will stay recorded as satisfied on your credit file for 6 years.
Aim to pay all your credit payments on time - consistent late payments will appear on your credit file and influence a potential lender's decision to grant you credit in the future.
If you find yourself in financial difficulty respond to the debt and do your utmost to pay it off. Contact your creditors as soon as possible, and distinguish your priority debts first.
Equifax always recommend that a consumer obtain a copy of their credit file, preferably before they become credit active.
If the consumer believes there is an inaccurate entry by a lender on account information then there is a facility called Notice of Dispute* which allows the consumers to dispute that particular piece of data
Another facility available is a Notice of Correction*. The consumer can write a 200 word statement to explain a particular piece of information held on their credit file
The Electoral Roll confirms who you are and where you live and differentiates you from other members of the family who live at the same address - this is where it is important for people working in the armed forces to register at a permanent address, such as their parents.
A lender will always look to verify the information on the application form, for example proof of residency, If an individual is not registered on the electoral roll then taking along some other documentation which confirms a place of residence is always helpful.
Getting a copy of your credit file the individual can see what type of information is held and what is not. From here consumers can see what information is already available for lenders to make an informed assessment. If an individual does not have any financial history then they can have a notice of correction added onto their credit file to explain that they have either not been in the country or been away from the country for a number of years and have not been credit active. The notice of correction is flagged to a lender each time a credit search is carried out.
Consumers can request a copy of their Credit File by logging onto http://www.equifax.co.uk or write to Equifax, Credit File Advice Service, PO Box 3001, Glasgow G81 2DT.
*Notice of Correction
A Notice of Correction enables you to comment on the information on your credit file, should you wish to flag to any potential lenders individual circumstances which may impact on your ability to obtain credit.
If you are not sure what to write, Equifax can help you write the statement. You may, of course, wish to write your own statement, however bear in mind that the statement can be no longer than 200 words. Once this is on your credit file it will be flagged to any potential lenders every time you make an application for credit.
Some typical examples of when this may be appropriate include:
If you have recently changed your address and you are not currently registered on the Electoral Roll
If you have recently changed your name (i.e. recently been married, separated or divorced)
If you have fallen behind on credit repayments due to redundancy or loss of employment or have been unable to work because of a long-term illness but are now back in paid employment.
*Notice of Disassociation
A notice of Disassociation is a facility Equifax provide that enables you to be viewed independently away from another person. A form is available online for you to print off and fill out.
If you do not want a lender to associate you with third party information, as long as you can prove there is no financial connection, you can apply to Equifax to have a Notice of Disassociation loaded to your credit file. This will then automatically filter off the third party information so lenders will no longer be able to see it.
The use of third party information by credit reference agencies is currently under review by the Government and Equifax is putting processes in place so that lenders when assessing a credit application will no longer use this information automatically. However, given the complexity of the issue it will take some time for this to be implemented in lenders systems.
In the meantime, credit information organisations like Equifax will continue providing information on individuals other than yourself, where the third party has resided concurrently with you, at either your current address, or any previous address, and it is reasonably believed that the third party has been living as a member of the same family as you in a single household. This will enable lenders to make a responsible and objective assessment of your ability to repay credit instalments.
*Notice of Dispute
You can apply for a Notice of Dispute online at http://www.equifax.co.uk. Once Equifax has received your completed form they will acknowledge this by post. Equifax will then write to the Lender on your behalf who have to respond in the agreed period of 28 days. If you are not satisfied with the Lenders response, you can go to the Information Commissioner. Equifax will correct any inaccuracies in data promptly after being informed of any error, but because they have no first-hand knowledge, you are requested to agree the correction beforehand with the lender before the company does this.
| 
