This week | MARTIN'S QUICK BRIEFING: For more tips, alerts & awful puns, follow Martin on Twitter 10 ways to boost your credit score
Crucial if you may want a mortgage, card, loan, contract mobile & more Credit scoring isn't just about getting accepted for products, increasingly it dictates your rate too. So if you want to ensure things stay cheap, whether you've had past problems or not, managing your credit worthiness is now a core part of good financial housekeeping. Here are the 10 key need-to-knows... | 1. | You DON'T have a universal credit rating - there's no blacklist. Each lender runs its own scoring system to assess: (a) If you're a good risk & (b), if you are, can it make money out of you? It's not universal, one lender may decide yes, while another says no. See how credit scoring works for more.
This is why you should take the credit scores that credit reference agencies try to flog you with a pinch of salt. They focus on risk, and only look at your credit file. Yet lenders also examine key info (incl salary) on your application form, any past dealings they've had with you and profitability. So even some getting perfect credit scores from agency tests get rejected. | | | | | 2. | It's all about making yourself more attractive. Getting accepted is like going on the pull, small cosmetic changes can help; but different lenders, like people, find different things attractive. The following tips often help, both for how they score you and to prevent a fraud red flag.
a) Space applications. Too many too close looks desperate.
b) Stability's good. If possible, put a landline, not mobile, on applications.
c) Be consistent. Eg, use same job title on applications if it hasn't changed.
d) Get on the electoral roll. Without this, getting credit's tough. Do it here.
e) Problems stay on your file 6 yrs. If you can hold until gone, great.
f) Applications stay on file 1 yr. If you've lots, don't apply until wiped. | | | | | 3. |  It's all about predicting your behaviour. When you're credit scored, they're trying to predict your behaviour, based on the data, to see if you'll make them money. So it could be you're applying for a bank account, but what they care about is how likely to apply for a mortgage you are.
This means if you've had little credit before, even if you've never done anything wrong, rejection's likely as they've not enough to go on. Of course, if you've a poor history, you need to prove you've changed. | | | | | 4. | How to (re)build your credit worthiness. Perversely, the solution is get a credit card, do £50ish/mth of normal spending, repaying IN FULL, preferably by direct debit, to avoid interest and missed payments. A year of this good behaviour should build or rehabilitate your credit.
If you've a poor score, you'll only get a specialist card at a hideous interest rate (not a problem as you're repaying IN FULL), and even then you may be rejected. To avoid adding unnecessary applications on your file, use our Eligibility Checker first to see your odds of acceptance for different cards.
As a last resort, anyone can get the Cashplus Creditbuilder* prepaid card. Pay it £5/mth for a year and it counts as loan repayment - hopefully after a year it'd help you get a rebuild card, though you may prefer to just wait until the bad stuff wipes from your file. FULL HELP in Rebuild Credit Cards. | | | | | | 5. | Get PAID £10 to check your file. Errors on your file can kibosh applications. So check files annually and before big applications such as a mortgage. Even things as small as the wrong address on an old but still open account can cause rejection, so check line-by-line.
While you've a legal right to check your file for £2, there's a trick to get paid to check it (you sign up for a free credit monitoring trial, via a cashback site, then cancel). See Check my credit file for full help. Do note checking your file never impacts your credit score. | | | | | 6. | Applications mark your file - so use the MSE Eligibility Checker first.
Every time you apply for a product, whether you're accepted or not, it marks your file - and too many can cause rejection.
To help, we've a tool showing your odds of acceptance for top cards, so you can choose which to apply for. It uses a 'soft search' that is recorded on your file, but lenders can't see it.
Eligibility Checkers - (shows which cards you'll most likely get)
Balance transfer cards | 0% spending cards | Cashback cards
Cheap spending overseas cards | Airline rewards cards | | | | 7. | Got an unfair default on your file? You can fight it. If your file's wrong...
a) Check it's right at the other credit reference agencies (check your file).
b) Write to the lender the problem's with and ask it to correct.
c) If it won't, add a 'notice of correction' to each file briefly explaining why it's wrong/unfair, eg, "It's a catalogue debt, but I never received goods."
d) Also complain to the free Financial Ombudsman, which can order companies to correct errors on your file. FULL HELP: Dealing with defaults. | | | | 8. | Your credit score impacts the rate you get. Under consumer credit law, for 'representative' deals (watch for that word) lenders only have to give 51% of accepted applicants the advertised rate. The rest are usually designated poorer credit scorers and given a worse deal.
As Pete emailed: "Went online for a loan, completed the forms, they tried to stiff me for 19.5% APR instead of 5%." | | | | 9. | Never miss repayments - use the direct debit trick. While each lender scores differently, missed repayments for credit products, utility bills and some water bills (see which payments count) are universally seen as ugly.
If possible, repay by direct debit. If it's a credit card, and you can't pay the same each month, set up a direct debit to cover at least the monthly minimum, then call up to repay more. See Danger: Min Repayments. | | | | 10. | Beware joint mortgages and bank accounts. If you're financially linked to someone, their credit history can be incorporated when they're assessing if you should get a product. If their's is bad, you want to avoid this.
Yet it's not whether you kiss, live together, hold hands or are married that links you. It's simply whether you have a joint mortgage or bank account (joint credit cards don't exist). Plus if you're now financially independent, ask credit agencies to de-link you. | | |
For more tips and tricks, see Boost Your Credit Score. To help understand, watch Martin's ITV show explaining this. If you're struggling with debt, don't borrow your way out of it, see Problem Debt Help. |
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| The Ones Not To Miss | Wed 22 May 2013 |
Women's car insurance UP 10%
The younger you are, the worse it is. 25-year-old women up 18%, 20-year-old women's prices up 32% Last December, an EU ruling meant men's and women's car insurance prices were equalised. New research from Tiger Insurance shows the effect on (especially younger) women's costs has been dire, while men have benefited. So never has following the full system to crack costs at renewal been more important.  NEVER just auto-renew. Huge hikes are likely for most who do. Sarah tweets: "My renewal was £1,200. New policy with same company £690. How's this justified?"
- Step 1: Trial & error cost-cutters insurers don't tell you. A) Try adding a responsible older driver as 2nd driver. Faevouritexox tweeted: "As a new driver, my insurance wanted £5,000. Adding mum & dad dropped it to £1,900." B) Don't assume 3rd party's always cheapest. Selecting comprehensive makes some insurers think you're a lower risk. Try both. C) Tweak your job title... but don't lie. Fabsternation tweets: "Creative director to marketing manager saved £300+." See the Car Insurance Job Picker.
- Step 2: Get your cheapest quote at speed. No insurer's cheapest for all, so you need work to find your winner.
- Combine comparison sites: More quotes in not much more time, try MoneySup*, Confused.com* then Google*.
- Add big 'uns comparisons miss: Then get manual quotes from Direct Line* and Aviva*.
- 2+ vehicles in one home: Comparison sites miss this. While multi-car policies don't always win, they're worth checking. Add Admiral MultiCar* to your comparison to see, and if time, LV*, Aviva* and Churchill*.
- No luck? Try 'black box' insurers. If all else fails, get quotes for a telematics box which tracks your driving. Pay-WHEN-you-drive: Coverbox* and iKube*. Pay-AS-you-drive: Insurethebox. Pay-HOW-you-drive: Co-op* and AA.
Full step-by-step help in the Cheap Car Insurance and Cheap Young Drivers' Insurance guides. back to top ↑ |
| New 27mths 0% balance transfers - longest EVER. Accepted new cardholders can shift existing credit card debts at 0% to Barclaycard* for an increased 27 mths (3.5% fee). Fully repay before the 0% ends & never miss repayments or it jumps to 18.9% rep APR. Can you repay quicker? Full help & lower fee options in Balance transfers (APR Examples). Free Drinks Vouchers - Sprite, Pimm's, whiskey
500,000 free 500ml Sprite (RRP £1.15) | Free Pimm's at Pitcher & Piano | Free whiskey at O'Neill's. Pls be Drinkaware £20 Shell petrol £10. Buy 4,000 Shell pts worth £20 in petrol for £10. Fiddly but good. Cheap Petrol 3for1 Soap & Glory Boots trick? Combine 3for2 & voucher. Gets £26 mascara, stain & lip gloss for £10. Boots Trix |
The top 10 thrifty tips - MoneySaving Old Style
Forum tips to bust grime with white wine vinegar, condition hair with mayo, make your own Big Macs and more While our focus is MoneySaving new-style (cutting bills without cutting back), the site's MoneySaving Old Style forum board is about thrift - how to spend time, rather than cash, to DIY. Here are just 10 of the gems to help you start.  1. Bust grime for less. Work white vinegar, bicarb & cola magic. Save zillions on cleaning thread.
2. Make your own Big Macs, KFC & more. Clone fast food at home. Takeaway secrets thread.
3. Treat your hair to some mayo. Plus sugar exfoliator & other homemade beauty fixes thread.
4. Use up larder leftovers. Started by Tiff in 2005, the Store Cupboard Challenge is still going strong. Create recipes using your fridge or cupboards' contents, then share how it went.
5. Tuck into eggs from your garden. Swap tips in Hey... let's keep chickens. As founder Loftyboy says: "If you haven't tasted a creamy, orange-yolked egg, you haven't lived."
6. Perfect pickles. If you love jam & chutney, Thriftlady's Preserver's Year shows what to boil up when. May's rhubarb.
7. Old Style Calendar. Forumite Angelavdavis designed the Old Style Calendar to print, full of seasonal tips.
8. Upcycle vintage furniture. Join Shabby Chic fans lovingly giving sad salvaged pieces new looks, incl before and after pics.
9. Extreme tricks. Do you turn old tights into hairbands, or eke out milk with water? Fess up your Sneaky Savings.
10. Tried & tested thrifty recipes. The Old Style Recipe Index is a fab compendium, incl slow cooking & breadmaking.
Get the book: Thrifty Ways for Modern Days* is written from forumites' collective wisdom. Author proceeds go to charity. back to top ↑ |
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| 2 specs £23 | Designer prescription sunnies £20. Combine daily deal & 2for1. Use codes for sunnies. Glasses Jones Bootmaker 30% code, FCUK 20% code, Gap 30% code & more...
Jones Bootmaker 30% code (biggest ever) until Thur | FCUK 20% off code | Gap 30% off code & vouch in £1 mag
Boden 15% + free del code | Warehouse 20% off code | Oasis 20% off code. Full list: Discount vouchers Burger King 2for1 vouchers. Register 'n' print to get 18 vouchers valid till July, some are 2for1s. BK Deals |
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| £10 off iPads, Kindles & more via Tesco Direct £10 off £75. Code for electricals & gaming. Tesco Direct Deals Ends Thur. A year's unlimited b'band & line rent £83 (equiv £6.90/mth). MSE Blagged. If you missed last week's best ever deal, this TalkTalk Essentials* offer is still hot. You get a) Line rent. Usually £14.95/mth, but later in sign-up process opt to pay £114 for a yr upfront, equiv £9.50/mth. b) Unltd b'band. £3.25/mth, avail to 85% of UK. c) Free £70 Love2Shop vouch. Use in Argos, Boots etc. Factor as cash & it's £83 over the year's contract. Cheap Broadband |
3.5m NEW tax rebates due. Free tool
HMRC's just announced 3.5m have paid too much tax and are owed, though 2m have paid too little Another year, another raft of tax errors. Up to 15% of taxpayers paid too much or too little. While in time you should be informed, you can check this year AND past years' tax codes now to find out, here's a summary:  Unique tax code calculator. Your tax code (eg, 944L) is an instruction to employers / pension providers on what to take from your pay. If wrong, it can cost £1,000s. Each year the taxman reconciles errors, & it's just done it for 2012/13. Our Tax Code Calculator guides you through whether you've had a likely error and how to reclaim.- 'I got £3,000 back' The calc also lists past years' codes and how to reclaim overpayments. We've had successes going back such as Angiedub: "I'd been on emergency tax since 2008. I've now got letters about what I am owed, it adds up to over £3,000. Thanks."
- What if you owe them cash? Underpayments of less than £50 from the last year can be written off (more poss, at HMRC's discretion). If you owe less than £3,000, you can repay via your pay packet. If more, or if you can't afford to pay within one year, you can ask the Revenue for a payment plan. More help in What If I Underpaid?
- HMRC never emails you about tax rebates. If you get an email, it's a SCAM, see tax scam email help.
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| Forum hottie. Sainsbury's Tu 25% off everything, George up to 50% sale. See High St Sales 3 Clematis plants £7.50 (usually £32) | Buddleja plants £5 (£20). MSE blagged. Via special links. Plants £5 FREE Bonusprint credit (no min spend). MSE Blagged. Pay p&p. Also 50% off canvases at Tesco. Photo Deals FIVE 2for1 vouchers for Alton Towers, Thorpe Park etc. In 50p papers from Sat (saves up to £46). Theme Parks |
Boost old ISAs up to 3%
ISA rates on old accounts have been slashed, CHECK YOURS NOW, you've a right to switch to earn more A cash ISA is just a savings account where interest is NOT taxed. Over 16s can save £5,760 this tax year in one. Yet as you can open a new one each tax year, some have £10,000s stashed. But check what yours earn now. If less than 2%, switch... -
 2.3% easy access on new & old ISAs. Cheshire BS, part of Nationwide, pays 2.3% AER (min £1k). It accepts this year's new ISA money and/or allows you to transfer from old ISAs. Plus, you can withdraw the cash whenever you need. The rate includes a 1.8% bonus until Oct 14 after which it'll plummet, but meanwhile works as a 1.8% min.
- First Direct customer? 3% possible. Those who bank with First Direct and have £40,000+ in old cash ISAs to transfer in, can get its 3% AER easy-access variable ISA exclusive. Full info plus the top deals if you want to fix rates in Top ISA Transfers.
- ISA transfer golden rules: a) Don't withdraw the cash, it'd no longer be in the tax-free wrapper. Instead, fill out your new provider's transfer forms to ask it to shift the money for you. b) You can do a transfer even without new money - they're separate. So you can open a new ISA for new money, and a different new ISA for transfers.
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| 'Free' £7 Helen E blusher code (£2.50 p&p). Thousands available in 4 shades. Helen E Deals 5,000 free pairs of Ideal Home Scotland tickets. MSE blagged. In Glasgow till Mon, usually £12-15. Ideal Home 'Free' mobile broadband with £2.50 Sim. MSE Blagged. You earn free 3G for watching brief ads online. Use code MSE125 to get a Samba* Sim for £2.50 (norm £5). Plus earn 125MB of data, get an extra 375MB on top. Samba Deal Over 55? Get Scotland rail returns £19. Also unlimited one-day Plusbus travel £2. Train & Bus Deals
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Restaurant vouchers | Discount vouchers and sales | Top deals |
| The Moneysaving community |
 CAMPAIGN OF THE WEEK:
Get back into education during Adult Learners' Week
From basic maths and English to part time degree courses, if you're thinking of learning something now's a good time. Find local events on the Adult Learners' Week website or contact your local college, council or uni campus to see what's available. Resources if you're thinking of going to uni: Part time guide, Mature student guide, Part time fee calculator, Part time video. Suggest a campaign: This is for MSE to support work by other charities, groups and campaigners. Send your campaign of the week suggestion. BOOK GIVEAWAY:
101 Things to do before you go abroad. 50 blagged for MoneySavers. Find out if you got one. MONEY MORAL DILEMMA
Shall I keep schtum about car problems when I flog it?
This week's MoneySaver who wants advice asks... I'm planning to sell my car, so just had it MOT'd by a mechanic I know well. It passed with no repair costs, but the mechanic told me it was close to getting an advisory note - at some point soon, £1,000 of work will need to be done. A friend is keen to buy the car and has offered the market value of £3,000. Should I tell him the mechanic's feedback, even though a different one might not have mentioned the advisory note? Enter the Money Moral Maze: Should I keep schtum | Suggest an MMD | View Past MMDs THE GREAT HUNT
Your Green Deal Tips - was it worth it?
Have you had a Green Deal assessment? We want to tap the knowledge of MoneySavers who have tried it, to get your tips, and to see if it was any good. Share yours/read others': Green Deal assessment experiences Read MSE Guide: Green Deal Mythbusting Past Great Hunts: View all CHEAP FLIGHT SALES ALERT
Airline: Jet2 Price: From £34 Ends: Fri 24 May
Our pick this week is Jet2's summer sale. It's for flights to 10 destinations in Spain and Portugal from eight UK airports this June and July. Prices start from £34 and include some taxes and charges. We found flights from Leeds Bradford to Barcelona for £47.99. To find 'em quickly, use FlightChecker on a £50 one-way max search. Extra charges warning: Avoid payment and check-in charges - see Budget Airline Fee Fighting. Related: Cheap Flights, Cheap Hotels, Spending Abroad, Cheap Currency, Travel Insurance THE GREAT HUNT... REVEALED
Food items that freeze (and those that don't)
Who knew mashed potato could be such a controversial issue when it comes to freezing? We enjoyed reading about which food items freeze well, which included ice cube-sized portions of stock, herbs and wine, dairy products and bananas on sticks for a quick, frozen treat. We loved the idea of freezing citrus peel for homemade marmalade (and G&Ts). back to top ↑ |
Quick forum tips | Freebies |
Martin's blogs | Martin's appearances 23 May
Daybreak, ITV, 7.35am-7.45am.
Deals of the Week. | 23 May
Shelagh Fogarty, Radio 5, 12pm-1pm.
Consumer Panel.
Listen to past shows. | 24 May
The Martin Lewis Money Show, ITV, 8pm-8.30pm.
Student finance and PPI reclaiming.
PS. Missed past shows? Watch them here. | | |
MSE team corner - Team appearances:
- No team appearances this week
| Board of the week The Over-50s Money Saving Board Share advice and tips on MoneySaving when you're 50+. Discussions include Stairlift experiences, Personal alarm systems for old people and Free prescriptions for a 60-year-old. | Cheap travel money |
This week's poll: When do you think interest rates will go up? The base rate has been on hold at its historic 0.5% low since March 2009, with little sign of it rising any time soon. The result has been record low borrowing rates but shocking savings returns.
But when do you think it will eventually rise? | Poll resultsIs your home phone and broadband provider any good?
Here's how the big players fared for customer service.
- Virgin Media was 60% 'good' on home phones, 63% 'good' on broadband.
- BT was rated 59% 'good' on home phones, 56% 'good' on broadband.
- TalkTalk was 60% 'good' on home phones, 42% 'good' on broadband.
8,600 voted. See the full results. |
Question of the week Q: Can I get my daughter on my car insurance for four months in the summer so she can work? Jen, via Twitter MSE Tony's A: We'll assume you've checked out public transport & other non driving options. So the real choice is add her to your policy or get a temporary policy. There's no hard or fast answer, it's a question of getting quotes for both.
Most insurers allow additional drivers, though adding a young driver can be costly and may not be allowed for a fixed 4 mth period. So you may need to add her permanently, then remove when she no longer uses the car.
If that's costly, use our cheap car insurance guide to see how much other insurers would charge to have your daughter as a named driver. If they are far cheaper and you switch, as long as you've not claimed, you'll get a pro-rata refund, though factor in any exit fees (£25-£50) and be aware you won't earn any no-claims discount during that insurance year.
Alternatively, arrange temporary insurance for up to 28 days (at a time), which won't ruin your no-claims record if she has an accident using the following temporary car insurance options. Please suggest a question of the week (we can't reply to individual emails). |
 Archna's free game of the week: Word Quest |
Where in the world are you? Take the test That's it for this week, but before you go, check out this fiendishly tough and super-addictive Google Street View game. Guess the location of the images, from any country in the world. The closer you are, the more points. Try the GeoGuessr game. We hope you save some money, Martin & the MSE team |
| Important. Please read how MoneySavingExpert.com works We think it's important you understand the strengths and limitations of this email and the site. We're a journalistic website, and aim to provide the best MoneySaving guides, tips, tools and techniques - but can't promise to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong.
What you need to know This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances - and remember we focus on rates not service. We don't as a general policy investigate the solvency of companies mentioned, how likely they are to go bust, but there is a risk any company can struggle and it's rarely made public until it's too late (see the section 75 guide for protection tips). We often link to other websites, but we can't be responsible for their content. Always remember anyone can post on the MSE forums, so it can be very different from our opinion. Please read the Full Terms & Conditions, Privacy Policy, how this site is financed and Editorial Code. Martin Lewis is a registered trade mark belonging to Martin S Lewis. More about MoneySaving Expert and Martin Lewis What is MoneySavingExpert.com?
Founded in February 2003, it's now the UK's biggest consumer help website with over 6 million people getting this email and nearly 10m using the site. In September 2012 it became part of the MoneySupermarket Group PLC. Its focus is simple: how to save cash and fight for financial justice on anything and everything. The site has over 30 full time staff about half of whom are editorial researching, analysing and writing to continually find ways to save money. More info: See About MSE Who is Martin Lewis? Martin set up and runs MSE, he's an ultra-focused money saving journalist and consumer campaigner. He has regular slots on Daybreak, Lorraine, Radio 2 Vine, BBC1 Watchdog, Radio 5 Consumer panel and presents ITV Tonight. He is a columnist for amongst others the Sunday Post as well as an author. More info: See Martin Lewis' biog What do the links with a * mean? Any links with a * by them are affiliated, which means get a product via this link and a contribution may be made to MoneySavingExpert.com, which helps it stay free to use. You shouldn't notice any difference; the links don't impact the product at all and the editorial line (the things we write) isn't changed due to it. If it isn't possible to get an affiliate link for the best product, it's still included in the same way. More info: See how this site is financed. As we believe transparency is important, we're including the following 'un-affiliated' web-addresses for content too:
Unaffiliated web-addresses for links in this email Capitalone.co.uk, barclaycard.co.uk, aquacard.co.uk, moneysupermarket.com, confused.com, directline.com, aviva.co.uk, google.co.uk, lv.com, churchill.com, admiral.com, coverbox.co.uk, ikubeinsurance.com, co-operativeinsurance.co.uk, talktalk.co.uk, amazon.co.uk, halifax.co.uk, thederbyshire.co.uk, sambamobile.com, uswitch.com, energyhelpline.com, firstdirect.com, santander.co.uk, postoffice.co.uk, comparethemarket.com, bt.com, alw.org.uk.
Financial Conduct Authority (FCA) Note Referring people to insurers or insurance intermediaries can in some circumstances constitute an FCA regulated activity. For this reason, pages with links which take you to the sites of insurers or insurance intermediaries are hosted by MoneySavingExpert.com Limited on behalf of MoneySupermarket.com Group PLC. MoneySupermarket.com Financial Group Limited is authorised and regulated by the Financial Conduct Authority (FRN: 303190). The registered office address of both MoneySupermarket.com Group PLC and MoneySupermarket.com Financial Group Limited is MoneySupermarket House, St. David’s Park, Ewloe, Chester, CH5 3UZ. To change your E-mail or stop receiving the weekly tips (unsubscribe): Go to: www.moneysavingexpert.com/tips |
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