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

Consumer credit history can be a complex area to understand

Common Credit Score Myths

Home > Our Loans > Bad Credit > Common credit score myths

Consumer credit history can be a complex area to understand. There are some myths that surface regarding how financial institutions calculate your personal credit score. Here we look at some of the most common misconceptions and dispel the rumours.

Linked Addresses Can Damage Your Score

It is often believed that the credit history of those who lived at your address before you can have an effect on your score. This isn’t true, and there is no link with past occupants unless you are financially connected in some way: this would be through a joint loan or account. When you are applying for homeowner loans or other forms of credit, the lender will ask for previous addresses to assess your stability. Family and friends who currently live with you but are not financially linked will also not have an impact on your credit score. If you have some form of joint account with them, then their history can also be checked even if you’re making a new individual application.

Credit Agencies Make Decisions

Your credit history is stored and compiled by credit reference agencies, but they are not in charge of making any of the decisions regarding your credit-worthiness. The lenders will assess this data to help them make a judgement on your application for secured loans, credit cards or other financial products.

Previous Debts Are Not a Concern

Any form of credit that you have had in the past, including homeowner loans, will be examined when you make further applications. Lenders will look at any past debt problems that are still on your file, including missed payments. Any time you fail to make a payment on time, receive a County Court Judgement (CCJ), enter into an Individual Voluntary Agreement (IVA) or are declared bankrupt, the information will remain on your file for a minimum of six years.

New Borrower an Asset

You might think that you’re a good risk for potential lenders if you’ve never taken out any form of debt before. However, if you then apply for secured loans, you could find you’re rejected or put on a higher interest rate. This is because lenders have no history to assess, so they can’t see how reliable a borrower you’re going to be. Having a small amount of credit and managing it correctly is one of the best ways of building up your credit score.

The Credit Blacklist

There is often mention of a credit blacklist that lenders look at when deciding whether to accept an application. However, this is a complete myth, and there is no list in existence that details bad debtors. When you apply for credit, your full history will be examined, and the lender will make a decision on an individual basis. Each financial institution has its own specific criteria that they use to determine whether to accept you and the limits that they might put in place.

It’s Not worth Paying in Full

People often believe that they shouldn’t pay off the full amount on credit cards as it could damage their credit score. This isn’t correct and, in fact, the opposite is actually true. If you use your credit cards and then clear them at the end of the month, it shows that you can afford credit and are less likely to miss a repayment.

The Number of Accounts Doesn’t Have an Impact

If you have large numbers of credit accounts, even if some of them are dormant, it could be detrimental to your credit score. It shows lenders that you have access to a potentially large amount of credit, which could cause problems in making repayments if you chose to use it all. Lenders like borrowers to live within their means, so try not to have card balances that are over 25% of the total limit.

Everyone Has One Credit Score

There are different criteria for each lender and product, so no one will have a single credit score. Lenders will look at the time of your application to assess your credit score, as small changes could have an impact either way.

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
Get Quote
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