How Many Points Does A Default Take Off Your Credit Score

Defaults can be very detrimental for your credit score and credit rating, causing issues when applying for mortgages, loans or other lines of finance. It is important to note there are a number of credit rating agencies who all track credit scores differently and some banks and lenders also have their own credit scoring systems. In general defaults are one of the worst penalised actions on a credit rating and could cause you a loss of up to 350 point on your credit rating, while a CCJ will cause up to 250 and missed payments on bills up to 80.

Another important factor is the age of default with lenders understanding if you have had a blip on your credit rating and managed to get your finance back on track, while if you have had multiple defaults will also cause you more credit issues than just one.

Credit Problems
Many potential borrowers have their mortgage applications turned down by high-street lenders, because of credit problems. However, here at First Choice Finance, we aim to find you a mortgage whatever your situation. Whether you are struggling with:

CCJs
mortgage arrears
defaults
discharged bankruptcy
irregular income or you simply have no credit history

We are here to try and help

Over the past few years, the gap between the rates of interest of high street products and those of specialist lenders has closed. We aim to get you the most competitive deal on the market no matter what your credit problems, we compare mortgage plans from our extensive panel of lenders to help you arrange a mortgage tailored to your needs and requirements.

Avoid Money Trouble With These Personal Finance Tips Personal finance is all about making choices. There are, of course, right choices and wrong choices. If you are looking to purchase a new car, go for one that is fuel efficient. Not only are they better for the environment, but fuel efficient cars will save you tons of money on petrol. Just be aware that many cars that were not made in recent years are not as fuel efficient as some of the newer modern cars.

As hard as it may be, try to avoid going on too many vacations, if you are hard pressed for money. It is great for the mind to get away sometimes, but it is not good on your wallet. If you insist on vacationing, try to find a location close to home.

Start saving. Many people don’t have a savings account, presumably because they feel they don’t have enough free money to do so. The truth is that saving as little as 5 pounds a day will give you an extra hundred and fifty pounds a month. You don’t have to save a lot of money to make it worth it.

Sticking your head in the sand and pretending that your personal finance issues will just go away serves no one. You will cost yourself more money and more stress in the long run by not dealing with issues head on. Take a proactive approach and work with your creditors to set up payment plans.

Use your calendar as a tool that helps you manage your finances. Every upcoming bill should appear on your calendar, so that it’s harder for you to miss them. In order to ensure that you pay on time, the date you mark should be the date you intend to pay, rather than the due date. This gives you a built-in safety net.

Determining what is right and what is wrong is, in most cases at least, an intuitive process. This is even true in regards to personal finances. Most of us know when we are wasting money. It is sometimes a bit harder to understand when we are wisely investing it. However, we can attain that understanding using the tips noted above.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.