ADVERTISEMENT FEATURE

Will the rise in inflation impact your credit score?

Your credit report says a lot about you. It tells lenders about your financial history, how much money you’ve ever borrowed or tried to borrow, how many late repayments you’ve made on loans or credit cards…and a lot more.

Credit reports provide an overall credit score, a tool that lenders use as a basis for all of their credit application decisions.Each time you apply for credit, whether that’s a loan, a mortgage, a store card, a credit card, or even a mobile phone contract – your credit history is examined, as lenders make a judgement on whether to lend you the money, or agree to the contract.

In a time of increasing inflation, many of us are being forced to make important financial decisions with regards to where we put our money, and make changes to how we spend and how we save. Many of these decisions could have serious impacts on your credit score, so it’s important to consider the future implications before moving money around.

When interest is low and inflation is high, savers are often among the worst hit. Families earning low or moderate incomes may also face a situation in which their income cannot keep up with the cost of living – and it’s in these cases that it’s important to consider the impact of any actions on future credit scores. You can view your credit score using a service such as Experian CreditExpert, which provides guidance on how to keep your credit score as positive as possible.

If you’re taking out more credit cards

Your credit report details how much credit you have available to you – not just how much you’re using. This means that if you have a whole selection of credit cards, each of which you’re only using part of, the actual total credit you have available to you will appear very high. This can have a negative impact on your credit score.

If you move house

A single move is unlikely to have a major impact, however, frequently changing home or moving from rental property to rental property is another factor that will be recognised on your credit report. In general, lenders prefer to loan money to those who are relatively settled, and aren’t bouncing from place to place. You can help your case by putting yourself on the electoral role – a tool used to verify identity, as well as showing that you have committed to a particularly location enough to consider it worthwhile registering yourself there.

If you’re remortgaging your home, or applying for personal loans

Each time you apply for credit, this is recorded and can impact on your credit score. Of course, it makes complete sense to show around for the best rates if you are looking for a loan, however, it’s important ask each lender that you apply to to register this as a ‘quotation search’ and not a ‘credit application search’ on their records. This ensures that your credit report stays completely clear, and there isn’t any impact on your credit rating.

So, before you make any significant financial changes to account for the rise in inflation, consider the future implications this may have for your credit needs, and review your current credit report to ensure it’s up to date and accurate.

Arts and Entertainment
TVShow's twee, safe facade smashed by ice cream melting scandal
Life and Style
life
News
Brad Pitt and Angelina Jolie reportedly married in secret on Saturday
peopleSpokesperson for couple confirms they tied the knot on Saturday after almost a decade together
Voices
Pupils educated at schools like Eton (pictured) are far more likely to succeed in politics and the judiciary, the report found
voices
PROMOTED VIDEO
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
News
Actor, model and now record breaker: Jiff the Pomeranian
Video
News
REX/Eye Candy
science
Sport
Alexis Sanchez celebrates after scoring his first goal for Arsenal in the Champions League qualifier against Besiktas
sportChilean's first goal for the club secures place in draw for Champions League group stages
News
i100
News
Down time: an employee of Google uses the slide to get to the canteen
scienceBosses are inventing surprising ways of making us work harder
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

PMO Analyst - Risk - Banking - London - £350-£400

£350 - £400 per day: Orgtel: PMO Analyst - Risk - Banking - London - £350 - £4...

C# Developer (C#, ASP.NET Developer, SQL, MVC, WPF, Real-Time F

£40000 - £48000 per annum + benefits+bonus+package: Harrington Starr: C# Devel...

C# Swift Payment Developer (C#, ASP.NET, .NET, MVC, Authorize.N

£45000 - £60000 per annum + benefits+bonus+package: Harrington Starr: C# Swift...

DevOps Engineer - Linux, Shell, Bash, Solaris, UNIX, Salt-Stack

Negotiable: Harrington Starr: A fast growing Financial Services organisation b...

Day In a Page

Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone
Amazon is buying Twitch for £600m - but why do people want to watch others playing Xbox?

What is the appeal of Twitch?

Amazon is buying the video-game-themed online streaming site for £600m - but why do people want to watch others playing Xbox?
Tip-tapping typewriters, ripe pongs and slides in the office: Bosses are inventing surprising ways of making us work harder

How bosses are making us work harder

As it is revealed that one newspaper office pumps out the sound of typewriters to increase productivity, Gillian Orr explores the other devices designed to motivate staff
Manufacturers are struggling to keep up with the resurgence in vinyl records

Hard pressed: Resurgence in vinyl records

As the resurgence in vinyl records continues, manufacturers and their outdated machinery are struggling to keep up with the demand
Tony Jordan: 'I turned down the chance to research Charles Dickens for a TV series nine times ... then I found a kindred spirit'

A tale of two writers

Offered the chance to research Charles Dickens for a TV series, Tony Jordan turned it down. Nine times. The man behind EastEnders and Life on Mars didn’t feel right for the job. Finally, he gave in - and found an unexpected kindred spirit
Could a later start to the school day be the most useful educational reform of all?

Should pupils get a lie in?

Doctors want a later start to the school day so that pupils can sleep later. Not because teenagers are lazy, explains Simon Usborne - it's all down to their circadian rhythms
Prepare for Jewish jokes – as Jewish comedians get their own festival

Prepare for Jewish jokes...

... as Jewish comedians get their own festival
SJ Watson: 'I still can't quite believe that Before I Go to Sleep started in my head'

A dream come true for SJ Watson

Watson was working part time in the NHS when his debut novel, Before I Go to Sleep, became a bestseller. Now it's a Hollywood movie, too. Here he recalls the whirlwind journey from children’s ward to A-list film set
10 best cycling bags for commuters

10 best cycling bags for commuters

Gear up for next week’s National Cycle to Work day with one of these practical backpacks and messenger bags
Paul Scholes: Three at the back isn’t working yet but given time I’m hopeful Louis van Gaal can rebuild Manchester United

Paul Scholes column

Three at the back isn’t working yet but given time I’m hopeful Louis van Gaal can rebuild Manchester United
Kate Bush, Hammersmith Apollo music review: A preamble, then a coup de théâtre - and suddenly the long wait felt worth it

Kate Bush shows a voice untroubled by time

A preamble, then a coup de théâtre - and suddenly the long wait felt worth it
Robot sheepdog technology could be used to save people from burning buildings

The science of herding is cracked

Mathematical model would allow robots to be programmed to control crowds and save people from burning buildings
Tyrant: Is the world ready for a Middle Eastern 'Dallas'?

This tyrant doesn’t rule

It’s billed as a Middle Eastern ‘Dallas’, so why does Fox’s new drama have a white British star?