Published On: Tue, Jan 9th, 2018

Martin Lewis reveals THIS is how to fix a bad credit score and improve financial health


Martin Lewis, 45, answered questions on finances in the new year from his followers on Facebook this week.

One, Angela Oldroid, asked: “How do I repair my awful credit score?”

Martin responded: “You don’t, you rebuild it – and I don’t mean that to be flippant.”

Explaining how Angela (and others) should rebuild a poor score, Martin said: “You can’t fix it, it’s broken for a reason – because you’ve had a bad credit history.

“It’s about performing right, it’s about being a good credit citizen.

“Making sure you always repay on time, you never have a late payment, and going and getting some credit and paying it off in full at the end of every month.

“Starting to use things the right way rehabilitates your credit score. Also, never making a mistake.”

Finally, he advised to “join the MSE credit club”, as this would offer a step-by-step guide on how to fix a poor credit score.

Another financial expert, CEO of TotallyMoney.com, Alastair Douglas, spoke to Express.co.uk about how debt affects your credit score and the best ways of improving it.

Discussing credit cards, he said: “Improving your credit score isn’t about how you have to have debt to demonstrate that you are worthy and can manage money, it is more about having lots of data points about you.”

Explaining what these “data points” are, he continued: “Lenders want to know you are a real person to begin with, so are you on the electoral roll, have you been in the same address for a few years, because if you move around a lot this can affect your score as this is one way you can run from debt.

“But if you are paying bills in your name, and have a current account, and maybe an overdraft too, before you know it you have four or five data points and you will be in pretty good shape.

“So, no, you don’t need to be taking out a credit card and running up debt just to demonstrate that you are a good risk.”

If you have done all of this and are still faced with a less than impressive credit score, Alastair offered some advice on how to improve.

He said: “Close old accounts you aren’t using, even if there is no debt on there. Our advice is shut down accounts you aren’t using because of the risk of fraud.

“If you’ve ever done anything bad, for example had CCJs or missed payments on your mortgage, you can explain why that is and when you apply for credit, by law the lender is forced to read the explanation that you’ve given and take it into account. This is the first thing you should do when you log in.


Celebrity Funny Gaming
Health Food-Recipes Books
Sports Lifestyle Music
Movies Business World
Fashion Top Stories Travel
Technology Education

buzzfix TODAY

Videos

Most Popular Posts