Rising mortgage rates and affordability

Rising mortgage rates and affordability is a big issue for lenders right now. Can people with mortgages afford to borrow? It’s important to know how much costs have risen and what impact that has on affordability and credit risk. Our last blog explained how those with better credit scores (who are more likely to have…

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Improve your chances of being approved for credit

There are many ways you can build your credit history and boost your credit score to improve your chances of being approved for credit.  Lenders assess an applicant’s ‘creditworthiness‘ when they receive credit applications to determine the level of risk involved in lending money to the applicant. Lenders will look at credit history and credit…

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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…

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What 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…

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Affordability is STILL the issue!

Affordability

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…

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The 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,…

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