Aug/091
Problems Getting Credit? Remove a Default from your Credit Report
There are 3 ways in which you can repair your credit rating to achieve the ultimate result of getting that car or mortgage that you really need. These options are as follows:
1. If your default/delinquent balance is over £300 you should write to the bank in question to claim that you did not receive a notice letter of the bank’s intention to serve you with a default. It helps if you have actually got the letters of correspondence to refer to in your argument but don’t worry if you do not.
2. If your default/delinquent balance is under £300 you should take a softly softly approach and politely ask the bank or financial organisation to remove the default from your report. Use the angle that you feel it is extremely harsh and that you are struggling to provide a good life for yourself and family because you cannot get a mortgage or loan to pay for necessities.
3. Finally, if you have exhausted all possibilities and have written and replied to all letters sent to you, the only choice left is for you to start a programme of repair for your report. This isn’t 100% effectively but it does leave plenty of consumers happy. This basically involves starting up credit agreements where possible (if needed anyway of course) and settling existing agreements in the proper way (avoid early termination arrangements).
Default balance over £300
This is a fairly significant amount of money and if you put yourself in the bank’s shoes for a second you will realise that – unless a genuine mistake was made – this boils down to theft. This is basically why banks take a tough stance over this and throw defaults around like grains of sand. However, if the banks do not take the proper course of action in serving you with a default then they are robbing YOU in the sense that you are unable to purchase a house for example. That is why their practice needs to be scrutinised in the same way as your credit report is search.
Ask the bank if they can prove that a letter warning of a default was sent to the registered address before the default arrived on your credit report. After 2006 the banks tightened things up quite substantially but before this time their operations were quite unprofessional and filled with ambiguity. The bank should then respond to your letter with a reply – probably a standard template reply – but never the less you have you starting point.
From this point you can keep replying until they send you proof that a notice was served and also that the agreement that you entered into is enforceable. At that point you can give up and take the emergency repair steps for improving your credit report.
Default balance under £300
Most success stories in writing off defaults are usually found in cases where the amount is much smaller. This is because the agreements tend to be of a more trivial nature such as mobile hone contracts etc. Having a mobile phone and forgetting to cancel the contract after the 12month period (which you made payments for without problems) should not prevent you from buying a family home. Okay, so this is an extreme example but one which we have heard on more than one occasion.
Be nice, be polite, get to the point, don’t waffle, address it to the bottom of the company pyramid and work your way up until you get a reply from the very top. Hopefully by this point you will have received a positive response but if not following the following last resort to repair your credit rating.
Repair your Credit Rating
Your credit rating is key to a progressive life. Without a good credit rating you will get nowhere unless you are already there – if that makes any sense! You need to make sure it is as immaculate as it can be and no matter what the state of the economy (eg. If there is a credit crunch of any description) you can assure the financial establishments that their money is safe with you.
Step 1
Open an account similar to the Natwest Step account which offers you the opportunity to open a basic account and as you prove your worthiness of managing your account they will offer you debit card, then an overdraft, then an overdraft extension, etc. etc. such progression looks very good on your credit profile.
Step 2
Be smart, realise that a credit card is being used here for a very specific purpose and is not meant for borrowing money over many months or even years. Do not use it as an alternative to a loan.
Step 3
Do not buy a load of new gadgets. Instead buy 1 or 2 and get credit for them choosing to pay the balance over as long a period of time as possible. The more small agreements you have over long periods the better.
Aug/090
HSBC and Barclays Announce Profits
It was announced today that, as expected, 2 of the big 5 UK banks have released their profit figures for the first half of 2009. The total profits for HSBC and Barclays have hit the £6m mark sparking fears of short selling and bonus culture dripping back into the banking system.
The profits are potentially a good sign for the economy as long as the temptation to jump straight back into big bonuses is resisted in the long term and, of course, both Barclays and HSBC refused help from the Government when the financial crisis was at its worst so far so they have every right to if they wish.
Barclays and HSBC both said they were pleased with their results, although they did point out that debts on a substantial scale still exist.
Jul/090
What would Cristiano Ronaldo fee of £80m buy you?
As Portuguese football sensation Ronaldo made his switch from Manchester Utd to Spanish giants Real Madrid, we thought we would analyse the fees involved. The sums of money that have been mentioned have been widely been described as ‘astronomical’ and although public money has not been directly involved in the transfer - a deal of this size will undoubtedly affect the consumer. So, what exactly will Ronaldo’s fee of £80m buy your average consumer?
The Maltese Falcon, an £80 million yacht that its designers claim is the largest and fastest personal sailboat in the world. At almost 90 meters in lengths the yacht has/needs three masts of 57 meters in hight and 25+ tons in weighth, rotate depending on wind direction. To maximize speed, the sails are trimmed to the wind by rotating the mast – thus making the boat much more aerodynamically efficient.
Arguably the UK’s wealthiest artist is selling his diamond skull creation for £80 to an investment group. Damien Hirst’s business manager, Frank Dunphy, explained that the platinum skull, studded with 8,601 diamonds, had been on the market since mid 2008 when it was shown at the prestigious Cube Gallery.
If reports are to be believed, 80 million pounds could get you a football club - and a big one at that. When Mike Ashley took over Newcastle Utd in 2007, it was clear the fans were not taking to him the way he had wanted. After a serious of unfortunate incidents Newcastle ended the 07/08 Premier League season safely away from relegation. However, exactly 1 year later they found themselves with Championship status and a huge loss in value. Mr. Ashley must now accept a loss of almost 70% on his original investment as he tries to cut his losses.
The fee for the footballer, however, was not the only talking point. Ronaldo is not believed to be one of the worlds richest footballers with a salary of 170,000 pounds per week. We decided it would be ‘fun’ to break down his earnings to let you know exactly what he earns over a given time period. So here goes…
8,840,000 per year
736,666 per month
24,285 per day
1,011 per hour
16.85 per minute
28p per second
It’s alright for some… I’m happy in my job as a blogger staring at a computer screen all day every day. Thanks anyway!
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