3 Steps to Success with Credit Agreements!

What is a credit agreement?

If you have ever… Purchased a mobile phone on a

‘contract’ deal? Bought a household appliance,

(e.g. white goods) or a piece of furniture and have paid/are paying the full price in instalments?

Purchased items using a credit card, or a store credit card?

…Then you have entered into what is known as a credit agreement.

What is a credit agreement?

You pay off the purchase in periodical instalments

You may be charged an additional interest fee to cover the cost of borrowing

This interest fee could be determined by how high or low your credit score is.

1 Ask the creditor whether there is a ‘cooling off’ period (this

is usually the first 14 days since the agreement is signed) and how long this is for so that if you wish to terminate the agreement, you can do so within this period.

Check to see if you can pay off the amount due on your credit agreement earlier than the time stated. If there is such a clause, check to see if there is a fee that you might incur for making an early repayment.

If you have issues with the goods or service that you have purchased through your credit agreement, then you may be able to communicate these with the creditor, if the supplier has not been able to deal with the issues.

Find out what exactly is being offered to you!

2If you have been paying your bills and any other loan repayments on time and regularly, we think it will mean you have been developing a good credit history, which makes it likely that you have a high credit score. This could put you in a good chance of being successful in

getting a credit agreement!

However, if you have had issues with making payments, or defaulting on loans in the recent past, then it may be worthwhile looking to see if you can improve your credit score, before you consider taking on a credit agreement. × Otherwise, a low credit score could be a reason for being

refused a credit agreement and this could further impact it!

Should you take up a credit agreement?

3 Banks, mortgage providers, lenders and retailers use

credit scores as a means of gauging your creditworthiness.

Your credit score is a 3-digit numerical value that represents how creditworthy you are, i.e. how reliable you are in paying monthly instalments.

Credit scores range between 0 and 999, whereby the higher your credit score is, the more creditworthy you are likely to be deemed as.

Your credit score is calculated using a mathematical formula and algorithm based on data that reflects your financial behaviours, especially your credit history, i.e. your history of borrowing and repaying.

Learn What’s Your Credit Score?

Check your credit score and credit report today at

!

.co.uk !