A British Man's Take on Debt, Saving & Investing

What can affect your credit score?

Posted on April 12, 2015 by Lee

When you apply for credit, lenders will take time to find out about you and your spending habits before approving or turning down your application. They do this in a number of ways, including looking at your credit rating. It is a good idea to have an awareness of the different things that can have an effect on your credit rating before making an application. This guide outlines how credit reporting works and the most important things to think about.


Credit Scores

Lenders will look at a number of different things to assign you with a credit score. Factors include:

  • Age
  • Salary
  • Credit history
  • The number of children you have
  • Previous mobile phone contracts


Understanding your credit score is the first step to improving it. Following the tips below may help you to achieve a healthier credit score.


Registering to Vote

Becoming registered to vote provides lenders with a reliable proof of your address. This information is shared automatically with credit reference agencies and can have a big impact on your overall credit rating.

Limit Credit Applications

Applying for credit can have a negative effect on your credit rating, especially if you are unsuccessful. This is because it indicates to lenders that you may be struggling to get credit elsewhere. Always check the criteria before any application to ensure you are eligible to minimise the chances of being turned down.

If you have other credit accounts, it is a good idea to close these. Lenders are unlikely to offer credit when you already have access to large amounts, as they need to know you are capable of repaying all debts owed.


Never Miss a Payment

Even payments which are late can remain on your credit record for a minimum of three years. Creditors often consider forgotten payments as a sign of an unreliable customer, and they may be reluctant to risk lending to you. If you are struggling to maintain repayments, always speak to your lenders. Sometimes debts can feel overwhelming, and it may be necessary to consolidate debts or use a balance transfer to take advantage of an interest-free period.


Avoid Moving Around Too Often

Lenders are less trusting of those who frequently move house. As part of your credit application, you will be asked to supply details of addresses you have lived at in the last three to five years, and any previous homes will also be linked to your credit report.


Check Your Report

Occasionally, credit reports may contain errors or inconsistencies which are potentially damaging to your credit score. For this reason, it is a good idea to check it regularly.


Close Joint Accounts

If you hold a joint account with someone who has a bad credit score, it can drag your score down too. Lenders typically assume that a partner with a poor credit rating has the potential to impact your income and ability to repay credit too. Once done, you can send the Credit Reference Agencies a ‘Notice of Disassociation‘ to ensure the link is removed promptly.


Keep Your Income as Regular as Possible

If you do not have fixed contracted hours, it can be hard to prove to lenders that you can afford repayments, even if your average income is well above the minimum criteria.


Phone Contracts

Check your credit report before applying for a new mobile phone contract. Phone companies will want assurance that you will be reliable about paying monthly bills. The same may also be the case for home fuel accounts, so think carefully before switching your gas and/or electricity accounts to ensure you will not be asked to use a pay-as-you-go meter, which can prove much more expensive.

Before making any applications, whether it be for a mortgage, a mobile phone, a new bank account or credit card, it is important to be aware of what’s in your credit report. A rejected application can potentially damage your credit score. Keeping a close eye on your credit report will also allow you to see quickly if you have become the victim of identity fraud.


How to Heat Your Home More Effectively This Winter

Posted on October 22, 2014 by Lee

As the temperatures begin their predictable autumnal fall, most families across the UK have already, or will very soon be considering, turning that thermostat once more.  If you are like a third of Brits, perhaps you’re still arguing about it. When you do finally reach consensus however – then another argument begins – where to set the thermostat? Until recently the official advice has been to set your thermostat to 21C and leave it well alone. If it’s already warm enough the heating stays off, and if it’s colder it will spring to life and return your dwelling to a more appropriate temperature.

Things are changing.

According to The Daily Mail, one in 20 thermostats are set at 23C. Now even discounting for the highly prized and much exalted nature of The Daily Mail, there is probably a wisp of truth in that. If we take a leaf out of our parents books and “put a jumper on” instead of cranking up the thermostat to a few degrees from nuclear there are savings to be had.

But just how much?

For an ‘average’ sized home that is ‘averagely’ insulated, ‘averagely’ occupied, with an ‘averagely’ efficient boiler, and all round generally quite average each degree your thermostat is lowered is calculated to save £75 a year. On average, you understand. That could swing in both directions but if like me you like fresh air even if it’s practically baltic outside you stand to save even more than that.

If we take on board the latest advice from a recent study we can see that actually we’re all just as comfortable at 18C (with that jumper on) as we are at 21C in a t-shirt and flip-flops. That 5C shaving from your thermostat – as well as reducing your carbon footprint by 3/10ths of China for the eco-warriors amongst us – it will also on average axe £375 a year off your heating bill.

That’s worth repeating – so I will. Set your thermostat to 18C and throw on a jumper – and save £375 a year.



One of the biggest things you can do to cut your energy bills and heat your home more effectively is to review your insulation. Cavity walls, lofts, double-glazing, and so on. Without a pleasantly insulated place in which to put your home heat it’s a tragic waste to then see it come out of your radiators, whistle past your ears, up into the loft and straight out to melt the snow on your roof, rather than staying in the room and keeping you warm.


Don’t heat the street

Radflek recently got in touch about their line of radiator reflectors. As part of their #WinterWarmup campaign they sent me one of their products to test out. The premise is quite simple and looks appealingly easy, even for the most frigid of DIY avoiders and the numbers they quote and thermal images they present are quite scary. Up to 45% of the heat energy radiated by your radiators goes into heating up the wall and the street rather than you and the room you’re in. By simply reflecting this potential wasted heat back out in to the room, you will reach the desired temperature both more quickly, and more cheaply, as your boiler won’t have to fire for nearly as long.

I will be reviewing Radflek more fully in a future post so stay tuned. They reckon you’ll earn back the cost of buying their product in a year and with a very long predicted life span for Radflek you’ll soon be quids in.


Don’t “put the thermostat up”

The Telegraph recently conducted some research and it reckons 35% of Brits turn up the thermostat to heat the room more quickly. It doesn’t. It just wastes energy and probably makes you too hot. Your heating system isn’t like your car in that the harder you push the accelerator the faster you go. Your heating system will plod away at the same speed bringing up your home temperature whether you set it at 18C or 188C. It just takes longer and uses more energy to get there.


Learn your programmer

There are some excellent ‘smart’ products coming onto the market and growing in popularity (Hive and Nest being just two of them) that make programming your system a breeze and they even learn your schedule by noticing when you’re home or away and adjusting accordingly. For the slightly less techno-geek amongst us it can really pay to learn how to use your heating programmer effectively. Take the time and tell it your schedule if you work 9-5 Monday to Friday. Why pay money to heat your home when no one is home? Just tell it to come on an hour before you get home.


I’m Going to Steal Your Life Savings

Posted on October 03, 2014 by Lee

Since before the dawn of time the world has been plagued with conmen. People who could spin a yarn so wild, yet so convincingly, you’d believe them anyway. The origin of the term ‘Ponzi Scheme’ that many will have a fleeting recognition of originated in the 1920’s with Charles Ponzi, arguably the grandfather of the pyramid scheme. Such tricks are nothing new and are even documented in The Bible. No matter your religious beliefs, it just goes to document the survivability and profitability of the confidence tricksters.

In our modern digital world with its checks, balances, security devices, chip and pin, complex password rules and more, physical attacks on your money are harder than ever. And yet we humans continue to be both the weakest chain in the security link, and the most effective attack against our modern security systems. Rather than attack the vault directly as in days of old with all the associated risks and equipment and expertise required; now attackers can sit in the luxury of their own homes, withhold their phone number on an unregistered pay as you go mobile phone, and dial unsuspecting victims and confidence trick their way through all the security in the world by getting you to do their bank robbery for them. One account at a time.



Common Frauds

There are almost as many types of fraud as there are fraudsters, but time and time again the industry is seeing a small number of frauds along a theme routinely perpetuated by individuals and larger organised crime groups. The proceeds go from simply funding lavish lifestyles, to eventually being funnelled through to terrorist organisations.

It’s important to note that the majority of these frauds are targeted either by means of data the conmen have already obtained, or by combining electoral roll information with the phone book. It is often elderly people who receive the courier and transfer fraud calls, but anyone can potentially be a victim.

Courier Fraud

Courier Fraud is becoming big business. The scam first appeared 3 years ago, and there have been many variations on the theme in that time. However the scheme is always along the line: Someone in a position of automatic trust (your bank, a police officer, the fraud prevention officer in a high-end department store and so on) will telephone you and advise of potential or actual fraudulent spending on your card. They will advise you to hang up and immediately dial 999 or your bank to report the matter. They often tell you to ask to verify an officer and give you a reference to quote.

Sounds good so far?

The confidence trick has begun however. The problem is the telephone network will not immediately terminate a telephone call when you have received it (unless it was a call to your mobile – courier frauds do not target mobiles). Instead, the telephone network will hold the call open for a short period. In that time the fraudster passes his phone to someone else just as you pick the phone back up and dial 999. They then pretend to be the Operator. You ask for the police, they pretend to connect you, and pass you along to a third person.

This person pretends to be the police. You diligently explain you have been advised by PC 123 Simmonds of Kensington Borough Police that your card has been used fraudulently and you would like to verify that. Fraudster #3 is only too happy to tap away at a computer and confirm the information and that he can take a crime report there and then.

Bam. You pass over the card number of the ‘defrauded’ card, your personal details, date of birth, address, telephone numbers, and everything else necessary not only to make use of the card but also potentially to steal your identity.

The “call your bank” version of courier fraud is often quite similar. You may be asked to “type in your card pin on your telephone keypad to verify you” after they have asked for your card number. The fraudsters have a DTMF decoder on their end of the line and now have your card number and PIN. They whip off a duplicate card on their end, and go spend your money. Your bank will have a hard time deciding this was fraud as all transactions will be recorded and authorised with your PIN.

Sometimes, depending on the script, they will advise you that a courier will attend your address to collect your cancelled card but this does not always happen as more often the fraudsters are getting all the information they need to clone your card over the phone.


Transfer Fraud

This fraud starts off along a similar theme to courier fraud. Someone in a supposed position of trust will call you and tell you that your money is at risk. They may know a lot about you (remember the intel gathering conducted under courier frauds to target their calls?), and will advise you perhaps that your online account has been compromised and you have only a few minutes to save your money by transferring it to a safe temporary holding account until your account can be re-secured.

This will be a high pressure call. They will not let up until you follow their instructions. “You will liable for all losses on your account unless you do this immediately!” – imagine you’re in your 60’s or 70’s and the convincing person on the phone is telling you your life savings are about to be stolen? The sad fact is they are about to be, but by the person on the phone.


How to Protect Yourself

Confidence trickers rely on conning you, gaining your confidence, adding a sense of urgency, and getting you to reveal information about yourself that under ordinary circumstances you’d never give out.

My golden rule? Just hang up.


Santander have a useful leaflet outlining some of the most popular frauds, as well as ways you can protect yourself and stay safe and secure online. You may think “I would never fall for such nonsense!” and as well you might not – but what about your elderly parents, or grandparents? Print the leaflet off and hand it to them and have a quick chat about this blog post with them. 3 million victims of fraud, and the power is in your hands to not make it 3 million and 1.

Combating Courier Fraud

These frauds rely on you (thinking) you are ringing someone else after an initial incoming call. Simply make the call from any phone other than the one you received the call on, and you’ll probably not fall victim to it. Courier Frauds will always ring your land line, because this type of fraud is not technologically possible to conduct on mobiles. When they tell you to dial 999 or call your bank when you hang up – do so – but do it from your mobile phone. That way you know you will really be speaking to the police or your bank, and not the person sitting next to the guy who just called you.

Combating Transfer Fraud

This one is harder to protect against from a technical point of view, as it is yourself doing all the work. The person on the end of the phone pretending to be your bank just needs to spin a convincing, pressured yarn about your money about to be stolen and only your actions can prevent it.

STOP. THINK. If your bank saw imminent fraud was about to be committed on your account, they would not waste time ringing you, talking for 5 minutes, get you to log in to your online banking, add a new payee, continue with the chip and pin faff for 5 minutes, and then provide you with an account to send the money to. They’d just block your account. Right there. Right then. 

General Advice and Further Reading

The Metropolitan Police have produced a booklet called The Little Book of Big Scams and provides a wealth of information on the scams perpetuating, and ways to protect yourself. It’s a good download filled with useful information in its 48 pages.

Remember, if in doubt, do nothing other than wait with the phone on the hook for 10 minutes, and then ring your bank or Action Fraud. Even better make the call from your mobile if you have one.

If you use some common sense and step back from an incoming call, then maybe I’m not going to steal your life savings.


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