Thrifty Scot gives credit advice

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Thrifty Scot gives credit advice

Tue 26th Aug 2008

Information about what causes bad credit and how to fix it has been given by finance website The Thrifty Scot.

The website explains how credit files, carrying data such as bills, repayment habits and debts, are used to determine whether someone is a good lending risk.

Credit ratings can be affected by late or missed repayments, county court judgements, multiple or rejected credit applications and defaults on debt.

A person's credit rating may even be affected by living at the same address as someone with a poor credit history, according to the website.

Identity theft and mistakes can also have adverse effects.

The Thrifty Scot explains that as lending criteria are tightened, someone with damaged credit will find it even harder to obtain "affordable finance" and will pay more than those with good histories.

Poor credit can be mended through prompt repayments, avoiding multiple applications and regular checking of the report, but the site warns it may take time.

Meanwhile, Liberal Democrat leader Nick Clegg has said the credit crunch is affecting his finances.

He told the Sheffield Telegraph that his family is "mortgaged up to the gills like a lot of other people".

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