How credit unions are helping with the Coronavirus
We’ve taken a look at five credit unions using the NestEgg Decision Engine and Workflow to understand how credit unions are helping with the Coronavirus. The surge in Coronavirus-related loan applications is huge. We estimate that at least £4 in every £10 borrowed, since lockdown, is supporting members suffering because of Coronavirus. What is Coronavirus…
Read MoreCovid-19 means falling credit scores. A holistic view is needed
Covid-19 will increase bad debt. Covid-19 means falling credit scores. Spending 1/5 of monthly income on credit is already tight. But losing 20% of a salary (assuming employers pass this cut on), means debts will be harder to repay. And the self-employed are faring worse. Currently they can only claim £94 per week. Support schemes…
Read MoreAbout missed payments
Missed payments are when you’ve not made a repayment due under a credit agreement. For example – not paying that month’s credit card repayment. These are reported to a Credit Reference Agency (CRA). In addition to loans and credit cards, credit accounts reported include gas, electricity and mobile phone contracts. A repayment is marked as…
Read MoreWhat is a credit reference agency?
Credit Reference Agencies (CRA) are also referred to as credit bureau. CRA’s hold and share information about your financial situation. It is where you are ‘credit checked.’ CRA’s are responsible for credit scoring. CRA’s manage data, including: Personal details: your name, date of birth, address and whether you’re on the electoral roll Financial associations you…
Read MoreA default can stop you getting credit
One or two missed payments might not be too serious. These are referred to as ‘early delinquency’. However, when you’ve reached between three and six missed payments, you may be declared in default. Defaults are serious. Often a lender will automatically decline an application if there has been a default. Importantly, defaults remain on a…
Read MoreAn introduction to credit scoring
So, what exactly is credit scoring? A credit score is a three-digit number that can determine whether your loan application is accepted. Also, credit scores are used to set the interest rate that you are charged for borrowing. Consequently, you might have to be above a certain score to get services, like a mobile phone…
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