20 May 2015

Posted by Discount Insurance on Wednesday, May 20, 2015
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Having a good credit score is important for your financial health, the better your score the more likely you are to being able to get the most affordable credit. A bad score could stop you getting a good rate or stop you from getting credit at all.

There are quite a few myths that are floating about, which we have been debunked with the help of Experian and Equifax, below are our top five.

5) Credit blacklists exist

Credit Blacklist doesn’t exist, but this myth remains popular and continues to add confusion. Lenders base their decisions on a range of things, which include information from credit reference agencies and the information you supply.

4) Lots of money means better credit scores

The amount of money in your bank doesn’t affect your credit score. What matters is whether you’re making payments on your credit.

3) Your credit score is affected by living with someone with debt

Living with a friend or a family member who is in debt won’t harm your credit score rating.

2) Old debts don’t matter

Credit agreements stay on your file for six years and count towards your score.  After your six years the credit agreement may not be on your file but a negative mark will remain indefinitely.

1) A poor credit score can’t be improved

Credit scores are a history of your borrowing and records are kept for up to seven years – even when the accounts are closed. The older the information is the less significant it becomes, meaning after a while your credit score will improve if you’re better with credit.

At Discount Insurance we promise to offer a competitive home insurance quote without compromising on cover, even for those with a history of bankruptcy or CCJ’s. Call 0800 294 4522 to find out how much you can save!