Monthly Archives: July 2012

Improving Your Credit Rating

Credit is an integral part of the modern economy and nearly every member of the UK population has used credit at some point in their life. Even if this doesn’t involve directly borrowing money, any service that you use and then pay for later (like a gas bill, for example) will appear on your credit rating.

So, it’s clear that credit ratings are very important, particularly if you want to borrow big sums of money, but how can you improve your credit rating if you haven’t had the best borrowing history?

First of all, make sure that you use one of the online credit check tools (click the link to check credit rating) from one of the big credit agencies like CreditExpert, this will allow you to carefully study your credit history and clear up any problems that you come to light.

The first thing to worry about is general maintenance, so if there are credit lines that are still listed as open but are no longer used, close them down. If there are others that point to the wrong address, or have a slightly incorrect name on them, make sure that they’re right. The aim is to have all your personal details 100% accurate so that when you come to make an application there is no confusion.

After that a good next step towards improving your rating is to sign up for the electoral roll. It’s surprising how much of a difference this can make, but being signed up at the correct address will improve your credit rating.

Then, make sure that any issues/negative marks on your rating are dealt with. Sometimes you won’t be able to get rid of them altogether, but you can talk to the companies concerned if you have negative ratings and try to get them improved. Failing that you can always talk to an organisation like the Citizens’ Advice Bureau to help you improve your credit situation.

If you can’t get the issues dealt with straight away, the best thing to do is concentrate your resources to pay off troublesome debt. The idea here is to get rid of any credit lines that have been problematic completely. This could take a little while, but if you’ve got a bad credit rating it’s better to deal with the issues straight away. It’s certainly a good idea to clear up any problems before you make further applications that may well end up being rejected and thus have a further negative impact on your rating.

The final thing to remember is that a credit rating isn’t the only factor taken into consideration when you make an application and if you have had past credit problems you should always start off by talking to your bank.

Do You Agree with the HAMP Program?

hamp

hamp

President Obama’s HAMP program was designed to help millions of struggling homeowner’s, but it has become obvious to nearly everyone that the program has not worked. Originally, the intent of the program was to modify the terms of millions of mortgages so that struggling homeowner’s would be able to make monthly payments and keep their homes. In reality, few homeowner’s actually qualified for the program, those that did found the application process to be too hard, and those that made it through the application process did not really benefit from the program.

The requirements for HAMP are constantly changing, but they generally required a homeowner to show that he or she was unable to afford his or her payments due to a change in financial circumstances. A lot of the homeowner’s in this country, however, couldn’t meet the strict standards of this requirement. For example, people who were able to keep their jobs but now have to pay twice what they were paying when they bought their home for healthcare premiums were unable to qualify.

Even people who did qualify soon found out that their bank had no idea how to handle their application. There were thousands of reports of missing documents, and many applicants got conflicting information from multiple bank representatives.

The homeowner’s who did make it through the process were often extremely disappointed in the help that they received. Many modifications only cut payments by a few dollars each month. Some people received new payment amounts that were actually higher than their old mortgage payment. Ultimately, many people going through this program lost their homes anyway.