Navigating and Understanding The World of Credit
Unless you work in banking, mortgage lending, investments, or anything in the finance sector/industry, having a good knowledge of credit, credit scoring, and what affects our credit, and how this information on us is used, is not something many of us is gong to understand, let alone have more than a basic knowledge of.
The fact is that we need credit, and the opposite can be said, credit needs us. Banks and lenders rely on us as borrowers to continue to consume and borrower money. If there were no one borrowing money, banks and lenders would find it difficult to stay in business, and need to find new ways to make a profit.
And we need credit not just for loans. Our credit scores are used in many ways outside of just applying for a loan. They can be used in getting hired for a job, getting insurance, a mobile phone, and in the instance of a Social Credit rating, in various other areas and aspects of our lives.
It can get complicated, and staying on top of this system of credit and credit scoring, can prove challenging.
In the end, a poor credit score can cost us money. So that is an incentive to be more aware of our credit and credit score, and also to want to be more knowledgeable of what affects our credit score.
The digital age has made our details and information on us valuable. It has even got to the point where our “digital footprints” can be used to know more about us.
Here are a few links to click on and review some guides for more detailed information on:
A Guide to Credit Reports and Credit Scoring
What Are Credit Bureaus
What Are and How to Use Eligibility Checkers
How to Improve Your Credit and Credit Score
What Affects Your Credit Score
An Infographic on Credit Scores (fun to see)
If You Have Bad Credit and Need a Bad Credit Loan
Credit Scores and Moving to Other Counties
A Guide to Travelling Abroad With Debt
Having Debts in Other Countries and Going Bankrupt in the UK
Does Owing Money Affect Getting a Visa
As you can see, for many learning and understanding these credit issues and questions, can be daunting. However, I recommend reading these links, and if you have any questions after reading, post your questions in the comments section at the bottom of the page.
With so much to try and learn, should we just use a service, an application, a third party to track our credit rating and credit score to aid us and allow us to use our time in other productive ways?
Getting Help in the World of Credit
Just as there are comparison web sites to help us buy insurance, and even find loans, there are web sites that help us with credit scores, and also identity theft.
There are even comparison web sites for guarantor loans.
Many of the comparison web sites for items we purchase, have expanded into credit monitoring services. And many of these services offer their services for free.
So if the service is free, is it worth it?
Many would say yes, but you need to know exactly what you are doing and getting into.
Just as many people wonder how social media sites, that are free, make money, the same question and way can be applied to the credit monitoring and comparison web sites.
They do it via your details, and ads.
Your details are valuable, and they and be sold onto other companies and agencies to target you for marketing and sales.
Is this a bad thing?
You just need to be aware and understand how it all works.
Many companies are transparent, not just with their privacy policies, which need to be complaint with UK and EU regulations, (EU for now), but also with how your data is used.
There are positive aspects and uses for these apps and web sites/companies, and one is that since they have your details, and know your credit and credit score, if you are seeking out a loan, be it a car loan, a mortgage, or a personal loan or credit card, they can do the research and searching for you.
Saving you time, and hopefully money.
Many sites now are offering help in switching banks, energy suppliers, insurances, and even mobile contracts. They may do this in the background for you, and send you notifications that they have found a cheaper offer or provider for you.
Again, saving you money.
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