Posts by Adrian Davies
How lenders make credit decisions
Credit checks are common when you apply for credit, such as a loan or credit card. Lenders need to assess how much of a risk you would be if they lent you the money. To make these decisions, lenders use data from credit reference agencies which includes your credit score, your history of repaying other…
Read MoreWhat is a credit score?
A credit score is a number that lenders use to assess your ‘credit worthiness’. The number is based on your credit history, which includes information about your past borrowing and repayment habits, how long you have resided at your address, and if you are on the electoral roll. The higher your credit score, the more…
Read MoreAffordability is STILL the issue!
Combining credit and open banking data is the key to understanding affordability. With interest rates rising and the cost of living crisis continuing, new ways of understanding affordability are essential. Open Banking is one way to assess affordability because it gives the latest transaction data. However affordability is much more powerful when open banking is…
Read MoreThe 50/30/20 method of budgeting
The ‘50/30/20’ method is a budgeting tool and can assist you in managing your money more efficiently. Using this method of budgeting is a good way to increase your savings. Savings are a crucial part of money management. Recent UK saving statistics found that 34% of adults have either no savings, or less than £1000,…
Read MoreDebt Ratios: what you need to know
When applying for a loan, lenders need to consider how much of a risk it is to lend money. Because of this, lenders care about how much you have already borrowed compared to how much income you have. This is what they call a ‘debt ratio’. Lenders calculate these by dividing the amount you’ve already…
Read MoreCredit Unions and Banks: what’s the difference?
When it comes to borrowing and saving, naturally the first place many might think to go to would be a high street bank. However, there are other institutions that offer the same products that you may not be aware of such as credit unions. Credit unions and banks both offer a variety of financial products…
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