Credit Building

What if you’ve never borrowed money or taken out a credit card? What shows on your credit report, how does it affect your credit score and how can you build your credit history to improve your credit score? Read on for our tips and guidance.

HM Revenue & Customs (HMRC) collect your taxes and ensure they get paid and aren’t missed. If you don’t pay your taxes this becomes a debt to HMRC. But whether you pay it or not, does it affect your credit score? Loqbox has you covered!

Self-employment offers a great deal of freedom and flexibility, but it also comes with responsibility and uncertainty. Not only do you constantly need to find your next job, but you’ve got to organise your own taxes. There’s plenty to love about being your own boss, but Loqbox can help you be the boss of your own finances, too.?‍

Your credit score is an indication of your creditworthiness. But there’s no universal credit score (in fact you have three!) and they’re not the only thing lenders look at. In truth, no number guarantees you’ll be accepted for credit cards, loans or mortgages. But comparing your credit score with the UK average for your age is a useful way to see where you stand.

Marriage is a common reason why people change their name. But there’s lots of reasons why you might want something new – entering into a civil partnership, transgender name changes, switching a child’s surname from one parent to another, reclaiming your original name after divorce or legal separation, or just not liking your birth name. But does changing your name affect credit scores in the UK?

There are loads of myths about how the three main credit reference agencies calculate your credit score. Money is a big enough source of anxiety without worrying about the things that aren’t true. Loqbox untangles fact from fiction, debunking 12 common credit score myths.

A credit card lets you borrow money up to an agreed limit so you can make purchases beyond your immediate means. This can be great if you need to spend more than you have saved. But remember, unlike your debit card which gives you access to the money in your bank account, credit cards are borrowed money!

When you apply for credit, like a mortgage, a loan or a credit card, the lender will consider your application carefully. This typically requires a credit check and a look at your affordability (i.e. can you afford to pay this money back). But each lender has their own exact method to come to a decision.

It’s a good idea to periodically check your credit score. Though it may be “out of sight, out of mind”, getting into the habit of checking it regularly can be really helpful. After all, you might suddenly need a loan or some other form of credit. It’s only then that you realise your credit score isn’t as high as you thought. Improving it is always an option of course, but it can take time. So you should deal with problems ahead of time. Future you will be so happy with present you when the time comes to get a loan!