Only 25% of people have ever checked to see if their details on their credit file are correct – all secured borrowers must go online and make sure that lenders can see the whole truth and nothing but the truth.

A survey conducted by Confused.com has found that 12% of people had gone online and found that their credit score had improved – but many more might be better off and not have a clue.

Joanne Garcia, head of credit cards at Confused.com says that with providers tightening lending criteria and rejecting many applications people are concerned that they might get a black mark on their credit score – so much so that 40% of people are now scared of credit scores. But if you never check your credit score you will never know.

Garcia says: “It is the 22 to 30 year olds who are the most concerned by the potential of a black mark on their credit score, as the financially savvy young look to the future and see problems about not only getting a credit card or loan, but also to finding a decent mortgage."

Get savvy yourself and get checking. Your credit score is what lenders see when they consider you for a borrower. If you have a black mark, or even worse if you have a mistake on the score, you could be turned down for credit.

Lenders are still saying no a lot more than they are saying yes, so you need to stand out from the rest. That means sorting out your finances and it means being on top of your credit score. And remember – if you can keep a clean sheet now, even if you cannot get credit you are going to be at the front of the queue for loans when things improve.

SOURCE: Confused.com, 11/11/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Research from moneysupermarket.com has found almost a third of credit card users have no intention of paying off the balance of their credit card in the next six months.

If you have unsecured debt, you have to consider consolidation or at the very least plan a means to pay off the risky debt as soon as possible – the longer you are saddled with unsecured debts, the more you will suffer in the future.

The website says those carrying a £2,000 balance on a card with an industry average rate of 18.21% APR, who split the repayments equally over six months, will incur £144.19 in interest payments. Longer term, those who borrow over 12 months would pay £188.79 in interest.

If those borrowers were to consolidate their debt, their interest rate would be just a fraction of what it is now. That means they could save more and work towards paying off all their debts instead of keeping their head above water.

Peter Harrison, credit cards expert at moneysupermarket.com, says: "People must be extremely careful about carrying debt on credit cards for long periods of time – you don't want to be paying for this year's presents when the Christmas decorations are rolled out again next year, particularly as rates could be at dizzying heights.

He says that with interest rates rising on many cards, minimum repayments often only barely cover the interest accrued on the debt – by paying just the minimum borrowers could spend most of their life paying a credit card company a monthly sum on a debt as small as £500.

Harrison adds: "Those with credit card debt should look at ways to reduce the outstanding balance on their card, especially as providers have been known to increase APRs for longer standing customers."

SOURCE: Moneysupermarket.com, 09/11/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Many people are finding that their applications for loans and credit cards are being turned down more often – if you have continuously tried and failed to get credit over the last few months, it might be time to stop altogether.

Every time someone tries to get hold of credit – that might be a secured loan, a credit card, a personal loan or even a mobile phone contract – they are subject to a credit check. the lender will call up the credit reference agencies and they will look at your credit score. If your score – a history of all your past credit agreements – proves that you are a good borrower, then their computers will say yes.

Of course, since the credit crunch, those computers have been reprogrammed to be extra strict in their deliberations. Even the smallest imperfection on a credit score can now lead to your application being turned down as lenders look to limit the amount of money they lend out.

One of these imperfections could be a 'footprint'. A footprint is a record of where you credit score has been checked – every time you agree for a lender to look at the score, it's recorded. This isn't necessarily a bad thing, but if you have 20 checks an only one agreement that tells the lender that you have tried, and failed, for credit many times before.

This sets alarm bells ringing – the lender suddenly becomes suspicious of a potential borrower who has been turned down so many times. It thinks there must be a valid reason for so many other lenders to say no, so it too is likely to also say no.

So the key to credit success is to not keep applying for credit. The less you apply, the less footprints you will make all over your credit score, and the cleaner it looks. This means you should only apply for credit that you are likely to get, and that means taking some professional advice. Talk to your mortgage broker today and see what sort of credit you are liable to able to secure.

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.