Hanley Financial Services Ltd – Your Money

Your Credit Score Explained

Your credit score can be particularly important when you apply for things like a credit card, a loan or a mortgage. There are three main credit reference agencies, Equifax, Experian and CallCredit and they all collect information about you which lenders access when considering your application.

Credit reference agencies gather information from sources such as banks, retailers and credit card companies. This includes personal details about you, information about your financial links to other people, whether you are on the electoral roll, the credit accounts that you have, and any payments you have missed or failed to pay. This provides the data that lenders use when assessing whether to lend money to you. So, your credit score represents how a lender views your creditworthiness and is a measure of how likely you are to repay what you borrow.

A higher score usually means you are seen as a lower risk; the more points you score the better the chances that you’ll get credit at better rates. How your credit score is regarded can differ from one lender to another as their borrower assessment criteria may vary.

Nearly 16 Million Don’t Have Contents Insurance – Are You One Of Them?

Having a home contents insurance policy in place protects your personal possessions should disaster strike. So, if you’re a victim of an unpleasant incident such as a burglary, leaking pipe or a devastating fire, having a policy in place means there would be a payout to help put things right.

However, recent figures from the Financial Inclusion Commission (FIC) show that almost 16 million adults in the UK don’t have any insurance in place to protect their personal possessions.

With the average value of contents in a three-bedroom family home estimated at £55,000, it’s important to be fully insured at all times. The November 2017 FIC report shows that 1.2 million successful claims were made on household buildings and contents cover in 2016, with an average payment of just over £2,500 being made. For households who aren’t protected by insurance, finding this amount of cash to replace lost, stolen or damaged possessions would put a strain on their finances. Home insurance brings valuable peace of mind to millions of families, so don’t run the risk of being uninsured.

 


 

It is important to take professional advice before making any decision relating to your personal finances

Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only.

Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

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