Many people don’t realise how much a credit history can impact their lives. A bad rating could mean you’re not able to buy your dream house or get approved for a mobile phone contract. A good rating could mean that you’re offered the best rates for credit. Even though a lot rests on credit scores, very few people actually understand how they work. Here are some common opinions – do you know if they’re true or false?

‘I don’t have credit cards so my score must be good’

FALSE – Unfortunately, when it comes to credit histories, you’re guilty until proven innocent, not the other way around. If you’ve never borrowed money before, then that also means you’ve never proven that you’re able to make repayments in full and on time. Lenders like to know that you’re not going to leave them in the lurch. If you’ve got a history of dealing with credit responsibly then you’ll be more likely to get approved.

Using credit cards wisely is a great way to bump up your credit score. As long as you meet the minimum payment each month (or preferably pay off more) then you’ll find that your credit history improves over time. Try using a credit card for online purchases – it’ll lessen the risk of your bank account details being stolen.

‘I’m penalised for my partner’s bad spending habits’

TRUE – If you’ve got a joint account or a joint mortgage with a partner, then their poor score may reflect on you. By being ‘connected’ to each other in this way, any problems that may arise from their poor handling of a joint account or personal credit could mean that you’re penalised in the future.

Before setting anything up in joint names, sit down with your partner and discuss your respective credit histories. Work together to improve a credit history which is lacking before signing up for anything together. Remember that past issues with credit will only stay on your file for up to 6 years.

‘The previous owner of my house was bankrupt so my score will go down’

FALSE – This is a common misconception, which stems from the fact that a particular address could be ‘blacklisted’. Just because someone who previously lived at your address had credit problems, doesn’t mean that the subsequent credit score problems will pass on to you. Credit histories follow individuals, not properties.

‘Only credit cards and loans are taken into account when working out my score’

FALSE – Although credit histories are searched by lenders when you want to take out credit, they are also used by utility companies, mobile phone providers and even landlords to discern whether you’re a stable, responsible person. Due to this, some energy and phone companies will share information with the credit scoring agencies. Rent is also starting to be taken into account as of this year. Your address, how long you’ve lived in one place and whether you’re on the electoral roll or not can all effect your score.

Author Bio: This article has been written by Coral Pearce-Mariner on behalf of UK Credit Limited, a guarantor loan provider. For more top money saving tips visit https://www.samedayguarantorloans.co.uk/Blog.

The economic landscape has changed dramatically for us all over the last four or five years. Nowadays we need to make the very most of what disposable income we have, so any savings we can make on our regular outgoings as well as one-off expenses are to be embraced. Fortunately all bargain hunters have a real ally in the form of the internet. No matter what you are looking for it is fair to say that your first port of call to be sure of getting the best possible deal is the net. Here are just a few simple examples of how you can leverage the power of the internet to your advantage:

Comparison sites

There are many reputable comparison sites out there, the best know of which are probably sites such as Moneysupermarket.com or Money SavingExpert.com. These sites cover a range of different products but they are possibly best used when you are searching for the best possible deal for a financial services product, such as a credit card, ISA or any type of insurance cover, from life to car insurance. They have plenty of advice on the best deals out there. Sure, they get commission for introducing customers and from advertisers, but that is not to negate the sterling work they do in providing all the information you could possibly require in one easily-accessible place.

Discount sites

If you are looking for clothing or for household goods then there are a number of excellent sites offering fabulous discounts on a huge variety of products including many designer products. Sites to look out for include Brandalley and SecretSales where you will find very many fantastic deals across their range of designer clothing and accessories, while if your preference is for sportswear you should try out the appropriately named SaveonGoods which specialises in ski wear items like animal hats and wild hats for young and old alike.

And it’s not just fashion that is covered by these sites. If you are looking or homeware then check out the fantastic offerings from Achica, while if you are looking for a good-quality but cheap holiday deals you should look no further than sites such as Trivago or Secret Escapes, not to mention more established sites such as Expedia.

Daily deals sites

Daily deals sites such as Groupon have risen to prominence on the back of the financial crisis. They send details of each day’s specials to your email inbox. The variety of offers is fantastic. You can find great offers on holidays or for restaurants but where they ate probably best is for cheap deals on local services. Local specialist cleaners Proclean Domestic Cleaning Glasgow have used daily deals sites to boost trade during quiet periods. Like many businesses they do not actually stand to make that much profit from running a deal on its own, but the opportunity to present themselves in front of potential new customers is invaluable. So it would seem these daily deal sites are a win-win for all parties concerned.