We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Evolution Money
Customer Enquiries 0161 814 9158
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue

Common myths explained

Unmasking Common Financial Myths

Home > Help & Advice > Unmasking Common Financial Myths

There are several common financial myths that carry on circulating, despite being misleading. It makes good sense to get up to speed on the most common of these so that you can get the most out of your financial planning.

Common Myth 1: Lending decisions are decided by credit reference agencies

The purpose of a credit reference agency is to put together and store your credit report safely. They do not make lending decisions; they are simply providers of your credit footprint. The lenders are the ones who will ultimately decide whether to proceed, and they do this based on several different criteria — not exclusively your credit rating score.

Common Myth 2: Past debts don’t follow you

Sadly, for many of us debts accrued in the past do count. If you have any IVAs (Individual Voluntary Arrangements), non-payment of debts or bankruptcies to your name from the past six years, these will show upon your credit history. Even something as seemingly innocuous as a missed repayment on a credit or store card can affect your rating, as there may be a red flag for unreliability, something that most lenders are very wary of. After six years, though, the slate will generally be wiped clean as far as your new lender is concerned, as a historic debt is not necessarily relevant to your current ability to repay a loan.

Common Myth 3: If you’ve borrowing for the first time, you’ll get a better deal

If you are borrowing for the first time, the lender will have no basis on which to predict your future reliability. This can in some cases be a basis for them to turn you down. Many lenders will be reassured, though, with some proof of good financial management in some form. Many people worry that if they are self-employed they will struggle to find a lender. In reality, there are several companies out there who will take your individual circumstances into account and will happily offer a self-employed loan.

Common Myth 4: Credit ‘blacklists’ exist

There is actually no such thing as a credit blacklist, and your gender, ethnic origin and religion are all entirely irrelevant to your credit rating. Many lenders will require an accurate picture of your current financial circumstances — how much you owe in total and your repayment history to date. A responsible lender will want to ensure that you are not taking on a financial burden that you will not be able to manage.

Common Myth 5: Others living under the same roof can affect your credit rating

Friends and family that you live with will not affect your credit unless you share a financial connection such as a jointly held mortgage, for example. Living with someone is not the same as having this connection.

Common Myth 6: If you repay your credit cards in full, your credit score will lower

This is just not true. In reality, you’re actually likely to get an improved credit score, as it is evidence both that you are able to manage your borrowing and can afford it. A lower score will come as a result of always making the minimum repayment, missing repayments or borrowing up to the very top of your credit limit.

Common Myth 7: It’s irrelevant how many credit accounts you have

Lenders need to be certain that you are able to afford additional credit, so they will look on an application more favourably if you don’t already owe significant sums across several accounts. They may also give preference to applications from customers who do not rely heavily on their current credit agreements. Ideally, you should aim to keep your borrowing on credit cards to under 25% of your limits.

Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 90 out of 100, based on 112 reviews over the past year. 112 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoThe Finance & Leasing Association is the leading trade body for the motor finance, asset finance and consumer credit industries in the UK.

Socialise

Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Pin us on Pinterest
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
Manchester,
M1 3BE


Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

Complaints:
0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 8 St John Street, Manchester, M3 4DU. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.

© 2018 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice
Apply Online
I want to borrow £
You will need to read and agree to our Fair Processing Notice before continuing. *
You will receive a call today to continue with your application.
Thank you for taking the time to fill in our online enquiry form. Unfortunately in this instance we won't be able to help as being a homeowner is one of our primary requirements.

Fair Processing Notice

Who we are:

Evolution Money Ltd, Progressive Money Ltd and Evolution Lending Ltd are all wholly owned subsidiaries of Darwin Loan Solutions ('the Group').

We take your privacy seriously and will only use your personal information to

A) Discuss loan offers and provide you with the products and services you have requested.
B) If you take out a loan with us and become our customer, it will also be used to manage your loan.

We'll keep your details for up to 12 months to enable us to help you with your loan application. If you don't take out a loan with us, we will delete your enquiry details unless regulations say we must keep them for longer.

This won't change any marketing preferences you've already chosen.

How we control and process your data:

Our companies hold and process your personal data in accordance with Data Protection law in the UK. We are committed to maintaining the privacy and protection of all personal data collected in connection with our broker and loan services. We may share your information with credit reference agencies and other companies for use in credit decisions, for fraud prevention and for debt collection purposes.

Next

Marketing Contact preferences - putting you in control:

We would love to tell you from time to time about offers and special deals on loans, insurance products and utility services which may save you money.

If you're happy to be contacted about these, please click the boxes to tell us how you want us to get in touch with you.

You can change how we contact you at any time by simply getting in touch with us on FPNandmarketing@darwinloansolutions.co.uk or 0161 814 9210.

Your choices do not affect your enquiry/loan application in any way.

BackNext

Marketing Contact preferences - Our partners:

We would love to tell you from time to time about special offers and deals from our carefully selected partners.

If you're happy to be contacted by them please click the boxes to tell us how our partners can get in touch with you.

You can change how we contact you at any time by simply getting in touch with us on FPNandmarketing@darwinloansolutions.co.uk or 0161 814 9210.

Your choices do not affect your enquiry/loan application in any way.

BackNext

Please read the full details of our Fair Processing Notice including Credit Reference Agency Information Notice (CRAIN) Click here to see a copy of the CRAIN.

If you agree to our Fair Processing Notice and want to continue to the next stage - click Agree.

BackAgree

Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution