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The Martin Lewis Money Show Season 17 Episode 2
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00:00Thank you so much. Thank you.
00:08The UK's biggest credit reference agency, Experian, is about to tell millions of its customers their credit scores will drop.
00:17If that's you, what does it mean in practice? Credit scoring is shrouded by grey mist.
00:23Tonight, I want to blow them away.
00:25I'm going to show you the truth of how it really works, what you need to do, and I will finish with my crucial key tips to boost your acceptance odds.
00:36Now, this isn't just about the obvious mortgages and credit cards and loans, where credit scoring can even impact the rate you get.
00:44Credit checks may affect things you pay ahead for, too, like mobile phone contracts and sometimes energy direct debit tariffs.
00:53Then, in my news you can use, new figures out show 1.1 million graduates have paid more student loan back than they should have done in just the last tax year.
01:05I will show you how to reclaim hundreds or thousands of pounds of it.
01:10And British savings bonds are about to get better, half-price Christmas trees, a Ryanair warning and cheap theatre tickets.
01:17Now, to our own showstopper, Jeanette Kwachi, everybody.
01:20Thank you very much.
01:23I am your leading lady.
01:24I am happy to be back, but we want to hear from you.
01:27So, please do send us your questions on X or on threads.
01:30Use the hashtag MartinLewis.
01:32Or you can email the team, MartinLewis at ITV.com.
01:35If we don't use your question tonight, we may use it in a future show.
01:39And a huge welcome, as always, to our studio audience.
01:41Wave your wallet, everybody.
01:42Wave your wallet.
01:44We love that.
01:44You're amazing.
01:45So, Martin, we had an enormous response to your call-out last week, saying that people could leave O2 because it's hiking its price hike, if you like.
01:54Just wanted to show you a few messages.
01:56This is coming from Nicola.
01:57She's ditched and she's switched.
01:58She says,
01:59So, if you watched last week, you know I got on my soapbox about this.
02:18O2 put up the price hike.
02:20It had previously said when people signed up, it would give them.
02:23So, it was a price hike on the price hike mid-contract.
02:25Crucially, if you get that notification, you've got 30 days in which you can leave.
02:30And then you might be able to go and save a lot of money.
02:32And I'm encouraging people to do so because we want it to cost O2 in the pockets so that it never behaves like this again.
02:40And other companies think we don't want to do that either.
02:42Yeah, Sean, he's taking your advice here.
02:44And Sean has haggled.
02:46He said,
02:46Now, this is the interesting one because when I told people their rights last week, normally when you're at the end of the contract, you can use that as an opportunity to haggle.
03:06Benchmark the best deal elsewhere, take it to your firm.
03:09But because this is a unique experience, this 30-day notification that you can leave, I wasn't 100% sure it would work with O2 like it would at the end of the contract.
03:18So, I asked people to try.
03:20Sean is a success.
03:21And frankly, I've had hundreds of other people who've taken this opportunity to go to O2 and say,
03:25I will leave you unless you give me a better deal.
03:27And they've got better deals.
03:28So, that's working.
03:29Fabulous.
03:29Right.
03:29Now, there is a question, though.
03:31It's coming from Shirley.
03:32It's a follow-up question.
03:33She said,
03:33I've seen your item on O2.
03:35I just asked for a PAC code and they've come back saying I need to pay the device off in full.
03:39Is that correct?
03:41It's very interesting.
03:42So, a PAC code is a porting authorization code that you get when you're changing mobile phone number.
03:46Listen, I've seen some of those messages.
03:49And what it actually says is it does say you need to pay this off in full.
03:52But, I think that is a terrible piece of phrasing by O2.
03:56I'm going to hope it's accidental and not deliberate.
03:59Certainly something the regulators should look at.
04:00What that means is you're still going to have to pay your handset.
04:05It doesn't mean you have to pay all of your handset now.
04:08You were paying it by the month and you can continue to pay it by the month,
04:11but you'll have to pay everything that they owe them on the same plan.
04:13But when they say pay it off in full, it sounds like you have to give them the money now, doesn't it?
04:17It's poor communication, bad phrasing.
04:19I hope it hasn't deliberately been done to put people off switching.
04:22If it has, that's something the regulators should look at.
04:25You can leave O2's airtime plan and keep paying your handset costs by the month,
04:30just as you were doing before.
04:31You're free to leave, Shirley.
04:32OK, hopefully that helps, Shirley.
04:34Now, I know we're going to get into credit scoring in this one later.
04:36The meat of the show.
04:38Something I wanted to ask you first, though, is a question that's coming from Amy O.
04:42Oh, there it is.
04:43I've heard there's a way you can claim back a student loan which you may have overpaid on.
04:47How do I do this and how do I know if this applies to me?
04:51Absolutely.
04:51We've just got brand new figures out on this from the student loans company.
04:55So I'm going to do the first part of my news you can use now.
05:00OK, so the new figures say 1.1 million university leavers and graduates
05:05have overpaid their student loans in the 24-25 tax year.
05:09And that adds to at least 4 million people from figures and requests
05:13that we've given them for information in the past.
05:14So there could be 5 million of you out there who are owed money.
05:18There are four reasons, but the first reason is the big reason.
05:24It's when you repaid your loan, but you didn't earn enough to need to repay it.
05:28Over a million people in the last tax year did this.
05:30Now, the rules state absolutely plainly,
05:33you only need to repay the student loan
05:35if you earn over the annual threshold in a tax year.
05:38What your annual threshold is depends which plan you're on.
05:42So we'll hold on this graphic so you can read your graphic as I go through.
05:46I'm going to focus on Plan 2 loans,
05:49because that's the one with by far the most people on.
05:51England starters, it's when you started university and where you were resident,
05:552012 to 2022, and wealth starters from 2012 onwards.
05:58Your repayment threshold is £28,470 a year.
06:02You repay 9% of everything you earn over that in a year.
06:04That's how it works.
06:07But PAYE, payroll, it takes the money based on your monthly earnings.
06:14So, £28,470 a year is equivalent to £2,372 a month.
06:19You repay 9% of everything you earn above that a month.
06:22Let me give you an example and you'll see why so many have overpaid this.
06:26Here we go.
06:27So, there's the monthly repayment threshold.
06:30Let's imagine maybe you've just started after university
06:32and it's the next year or two, you've had a few months off,
06:34you didn't work in April, you didn't work in May,
06:37you didn't work in June,
06:38then you've got yourself a job paying £36,000 a year.
06:42£3,000 a month, done, because it's easy maths.
06:45In each of those months,
06:47you have to repay 9% of everything above the monthly threshold,
06:51which is about a repayment of £56 a month,
06:54each month, for the remaining nine months.
06:57Do you understand why?
06:58OK.
06:59But, now look at this.
07:01Your total tax year earnings were £27,000.
07:06The annual threshold is £28,470.
07:11You earned less than the threshold.
07:15You don't have to repay your student loan.
07:16Here are the payments that you made.
07:18£508.
07:19You can reclaim the £508.
07:22So, this is big for many people.
07:25Who does it tend to most commonly affect?
07:27Well, it's those who only worked for part of the year,
07:30those who are on commission,
07:32or those who are on variable incomes.
07:33If your income is going up and down
07:35and you didn't turn over that amount in the tax work,
07:37you are able to reclaim.
07:39You use SLC Refund Request Form at gov.uk,
07:42or you can do it in your student loan company repayment app.
07:46You can do it for every year,
07:47except the current tax year,
07:49because the current tax year,
07:50you'll have to wait till it finishes.
07:51So, for every year before that,
07:53you can go and reclaim your money.
07:54Yes, Jeanette.
07:54Just before you move on,
07:55we put a success story on this one,
07:57and it's a big one.
07:58Have a look at this.
08:01Daniela lives in Loughborough
08:02with her husband and two kids.
08:04Being a maths teacher was the career that I always wanted.
08:08I needed to take the student loan to pay for it.
08:10After my initial £16,000, I borrowed.
08:13I also had to borrow another £9,000
08:15to pay for my teacher training.
08:18I've watched the Martin Lewis show
08:19for almost seven years now.
08:21There was one show back in November.
08:23Martin mentioned there's over a million students
08:26that have overpaid their student loan.
08:27Is that me?
08:28Have I ever paid?
08:29He gave numerous reasons.
08:30The one that stood out to me was gaps in employment.
08:34In the last few years,
08:34I have had to give up my job
08:36when I had my eldest child.
08:37He was born with a brain condition
08:38and requires a lot of care.
08:41Once Martin shared that
08:42you could possibly have overpaid your student loan,
08:44I acted instantly.
08:46It was as simple as
08:48log on to your student finance,
08:49click manage your statements
08:51and click request refund.
08:53Within 48 hours of my application,
08:55I was told I got a refund of £2,213.
08:59It was a pinch-free moment.
09:01I was seven months pregnant.
09:02I'm not working.
09:03I don't get an income.
09:04Having that money was really helpful.
09:07I'm so glad I went through the process.
09:10Yeah.
09:12Thank you so much for doing that film.
09:14So look, she said a million people have overpaid.
09:16That was the previous tax year.
09:17This is an annual figure
09:18and it's still a million people overpaying each year,
09:20which is why it's a clarion call for me
09:22that if you are a graduate or university leaver
09:25who's paying your student loan to cheque,
09:26you haven't overpaid.
09:27Now, just before I move on,
09:29because we came in,
09:30there is one thing.
09:31This is a technicality
09:32and people ask me about this.
09:33It's a bit complex.
09:35If you overpaid in some months
09:36but aren't over the annual threshold,
09:38you cannot reclaim.
09:40So this is a negative.
09:41Let me explain that to you.
09:43So here's a scenario.
09:44Someone who earns £24,000 a year,
09:46normally standard salary,
09:47so £2,000 a month,
09:49below the threshold.
09:50We'll stick with plan two again as an example here,
09:52but obviously from different plans,
09:53the numbers are different.
09:54But then got a £5,000 bonus in December.
09:57So they got a £5,000 bonus.
09:59Let's have a look.
10:00First of all,
10:02their total tax year earnings are £29,000,
10:05above the threshold, therefore.
10:07So they repaid 9% in this month
10:10of everything above £2,372.
10:14They repaid 400,
10:16just over £400.
10:17Now, what you might think is,
10:19hold on,
10:20they're only £500 above the annual threshold.
10:22They should be paying 9% of that,
10:24about £45.
10:25But no,
10:26it's done by the month.
10:27They've repaid £400 of their student loan,
10:30even though they're only just above the threshold.
10:32And this is complicated,
10:33but effectively the rule is this.
10:35You repay your student loan
10:37by the month through PAYE,
10:40and that is correct,
10:42unless your total annual earnings
10:44are below the threshold,
10:45and then you don't have to repay.
10:47If you think it seems unfair,
10:48that's because it's unfair,
10:49but that's the way the system works.
10:51Jeanette?
10:52Absolutely.
10:53I mean,
10:53I understood it,
10:54but you can move on.
10:56There's more.
10:56OK, good.
10:57You got it.
10:57Right, I've got more for you.
10:59Yes, you're right.
10:59Other reasons.
11:00Let's scroll up.
11:01There we go.
11:02I'll do these ones quickly.
11:03Reason to all much smaller,
11:04all in the tens of thousands,
11:05not over a million here.
11:06Wrong student loan repayment plan.
11:08If your employer doesn't know which plan you're on,
11:09it has to default to plan one,
11:11which is repayments above 26,000.
11:13But the biggest plan,
11:14plan two,
11:14and all the Scottish plans,
11:15plan four,
11:16the repayment threshold is higher.
11:18So you shouldn't be repaying as much.
11:19You should only be repaying above this amount,
11:21but you're repaying above that amount.
11:22If that's you,
11:23call the student loan company here for a refund.
11:25You can't do it online.
11:26Also,
11:27go and talk to your employer's payroll department
11:29and say,
11:29actually, this is my plan.
11:30Please change my setup
11:31so I'm paying on the right plan.
11:33Reason three,
11:34you started repaying the loan too early.
11:36Nearly 40,000 here.
11:38This is the rule.
11:39You only,
11:40regardless of what you earn,
11:41you only have to start qualifying
11:42to repay the student loan
11:44in the April
11:44after you leave university.
11:46For most graduates,
11:47that's nine months after they graduate,
11:49so you'd leave in the July,
11:50the following April.
11:51But if your employer
11:52has the wrong details,
11:53it can take the money too soon.
11:54If that happens,
11:55you can get the money back
11:56by calling SLC for a refund.
11:58Good to have your pay slips
11:59if you're doing that one.
12:00And the final reason,
12:02often get asked about this,
12:03is money is deducted
12:05after you've fully cleared the loan.
12:07So once you've paid off everything that you owe.
12:09Nearly 60,000 people last year.
12:11The loan's normally wiped after 30 years.
12:13It depends on the plan.
12:14Every plan is different.
12:15So you can look that up online.
12:17But the student loan company
12:19takes time to notify PAYE,
12:21so they don't always stop it on time.
12:22If that happens,
12:23you don't need to reclaim.
12:24You will be paid back automatically.
12:26My top tip, though,
12:27within the last two years
12:29of repaying your student loan,
12:31you can go online
12:32at student loan company
12:33and ask to set up a direct debit.
12:35So you pay it by direct debit,
12:36not through the payroll.
12:38And then you only pay
12:38the exact amount that you owed.
12:40And that is where we're finishing,
12:42I think, on student loans.
12:43One more.
12:44I know.
12:45I'm so sorry.
12:47There's one more question.
12:48It's coming from...
12:49I'm sorry.
12:49It's coming from Amy.
12:51Amy says,
12:51I recently received a student loan refund
12:53of £1,601 overpaid.
12:55A proportion of that
12:56will have paid off interest.
12:58When I claim the refund,
12:59won't the amount just be added
13:00to my student loan?
13:01Absolutely.
13:02Very important question.
13:03Yes, 100%.
13:05If you've overpaid
13:06and you get the money back,
13:08then your student loan account,
13:09you will owe more.
13:10Now, what you may be thinking is,
13:12hold on,
13:12doesn't he normally say
13:13it's best to overpay loans
13:15because then you pay less interest.
13:16The quicker you pay a loan,
13:17the better.
13:17You are right on normal loans.
13:20Student loans
13:20are not normal loans.
13:23For example,
13:24those on those Plan 2 loans,
13:25the biggest one being repaid off
13:27at the moment,
13:28the stats show
13:29only around
13:31one in three people
13:32will clear what they borrowed
13:33plus interest
13:34in the 30 years
13:35before it wipes.
13:37Most people
13:37will just pay
13:389% of what they earn
13:39above the threshold
13:40for 30 years.
13:41So if you've overpaid
13:43and you take the money
13:44and you're one of those
13:46two-thirds of people
13:47lower to middle earners,
13:49well, you're still going to repay
13:509% of everything you earn
13:51over the threshold
13:52for the next 30 years.
13:53So taking that money back
13:54is not going to cost you
13:55any more in future.
13:55The money in your pocket
13:56is better in your pocket.
13:58Now, with other plans,
13:59you are more likely
14:00to clear earlier
14:01because the loan amount's lower
14:02and the interest rate is lower.
14:04But what I would still say then
14:06is if you need the money,
14:07say, to clear expensive debts
14:09or to reduce your mortgage borrowing,
14:11on the other plans,
14:12the interest rate's only 3.2%
14:13and student loans
14:14have better terms
14:15than any other form of borrowing.
14:17You only repair it
14:17if you're earning enough
14:18and it's going to wipe
14:19at some point.
14:20So in that case,
14:20you may still be better
14:22to take the money,
14:24have it in your pocket
14:24so you can use it
14:25so you don't have
14:26other more expensive debts.
14:27But especially those
14:28on the Plan 2 loans,
14:30the majority of people
14:31are better to take the money
14:32rather than just to reduce a loan
14:33that won't necessarily mean
14:34they pay any less
14:35in the future anyway.
14:36OK, now...
14:36Mate, do you understand that?
14:37Because it's really complex.
14:39OK, I promise you're done now
14:41with that, I promise.
14:42Well, you can get in touch.
14:42Let us know
14:43about your student loan situation.
14:45Does this affect you?
14:46Always use that hashtag
14:47Martin Lewis.
14:48But coming next,
14:49credit scoring.
14:50How does it work?
14:51And what is Experian about to do?
14:53We'll see you in for.
14:53Welcome back.
15:06We're live.
15:06We're going to be talking
15:07about credit scoring
15:07in a moment.
15:08But just before that,
15:09we're getting lots of reports
15:10that the student loan company
15:11website and app
15:12is struggling a bit,
15:13likely because of lots of demand.
15:14It's always what we do
15:15on this show.
15:16So be a bit patient,
15:17maybe check it in half an hour
15:18or an hour or so
15:19and it should be easier.
15:20It should be.
15:20There's lots coming in
15:22over the break.
15:22I'm going to sort it all out
15:23and come back to it.
15:24But let's go to Jo in the studio.
15:26Jo, you've got a question for Martin.
15:27Hi, Martin.
15:28Hi.
15:28Hi.
15:29Yeah, I've heard that
15:30the credit agencies
15:32are changing the rules
15:33but I don't understand
15:34how they actually work
15:35in the first place.
15:36Could you explain?
15:37I can.
15:38And they're not changing the rules,
15:40they're changing the score.
15:41Ah.
15:41And the first thing
15:42you all need to understand
15:43is the difference between
15:44your credit score
15:45and the credit scoring process.
15:48Don't worry,
15:49I'm going to explain
15:49in my big briefing.
15:50OK, the truth
15:55about credit scoring.
15:55The most important thing
15:56you all need to understand.
15:58You do not have
16:00a credit rating.
16:01You do not have
16:02a credit score
16:03in the UK.
16:04There is no single number
16:06that dictates acceptability.
16:09Each lender,
16:10when you apply,
16:12scores you differently
16:13based on its own
16:14individual
16:16profitability wish list.
16:18Profitability,
16:19not risk.
16:19Why do I say profitability?
16:21Well, in many cases
16:22it is,
16:22are you a good or bad risk?
16:24But it may be a company
16:25that's trying to target
16:26people who are a poor risk
16:27so it can charge them more
16:28and for them,
16:29poor risk are profitable customers.
16:31So it's a profitability wish list,
16:33not a risk wish list.
16:35That's the...
16:35I was expecting that
16:39because this is what everyone says to me.
16:41But that's nonsense, Martin,
16:42because I have paid for my credit score.
16:44I know what my credit score is.
16:45I monitor my credit score very carefully
16:47and I do have a credit score.
16:50Is that what you were thinking?
16:51Yes.
16:51OK, let me explain.
16:53Here you go.
16:55The big credit reference agencies,
16:57there are three of them,
16:58they will show you a credit score,
17:00capitalised,
17:01because that is your credit score,
17:02not the credit scoring process.
17:04But they are just their illustration
17:07of how a typical lender may view you.
17:11They are not used by lenders.
17:14Now, just to prove my point,
17:16TransUnion is out of 710.
17:19Equifax is out of 1,000.
17:21Experian is out of 999.
17:23But that's about to change,
17:24so it's out of 1,250.
17:26The fact they're all different
17:27tells you something.
17:28Just before I go on,
17:29let's explore that Experian change for a moment.
17:32Here's what's happening.
17:33It's rolling out new scores
17:34from mid-November
17:35till the end of the year.
17:36Some of you will have had notifications today
17:38on this particular one.
17:3944% of you will see your band drop.
17:42It might drop from excellent to very good.
17:4342% will get a higher score.
17:45Some may be in a higher band.
17:48But crucially,
17:49this shouldn't change anything.
17:51Why?
17:52Because this is just their illustration
17:54of how a typical lender views you.
17:57The underlying data
17:58is what the lenders use.
18:01Your underlying data hasn't changed.
18:04Therefore, your acceptance by lenders won't change.
18:08We are too hung up on this.
18:10Now, we have a man from Experian here,
18:12John Webb.
18:13Thank you for joining us.
18:14John, why are you doing this?
18:15So, what we've done is,
18:17as you've explained there,
18:18lenders are looking at the data on credit reports.
18:20We've added in more data into our credit score.
18:23Things like overpaying a mortgage,
18:27reducing your overdraft,
18:29taking cash from a credit card.
18:30These are the things that lenders are now looking at.
18:33We've included them into credit scores
18:34so we can give people the most accurate view
18:37of how a lender will view their credit report information
18:40when they apply.
18:40How a typical lender,
18:41but every lender does it differently.
18:43Why 1250, though?
18:44Why have you increased the number?
18:46I don't get that.
18:47I've heard your explanations.
18:47I still don't get it.
18:48So, we did consider staying at the same score,
18:51but actually,
18:52the number one thing people tell us
18:54is that they want more information
18:55about how their credit score is calculated.
18:58By moving to the new range of up to 1250,
19:02it allows us to give people more detail
19:03than they've ever seen before
19:05about how their score is calculated,
19:07and more importantly,
19:07how to improve it,
19:08because typically,
19:09higher credit scores mean access
19:11to more affordable credit,
19:12better rates,
19:13better limits.
19:13You're obviously a cleverer man than me,
19:14because I can't see how doing it out of 999,
19:17creating it to an arbitrary figure of 1250,
19:19when you could just proportion it,
19:20makes any difference.
19:21But hey, we'll move on.
19:22So, let me move on a little bit.
19:24Here we go.
19:25The biggest single thing you need to understand
19:27about credit scoring
19:27is the biggest piece of information they miss.
19:29The biggest thing that lenders look at
19:31is on your application form.
19:33It's your income.
19:35Lenders also do affordability scoring.
19:37That isn't in your credit score.
19:38Think about it.
19:39You've got the best credit score in the world.
19:41It's been brilliant.
19:42You've just lost your job.
19:42You've got no income.
19:44You can't afford to repay what you want to borrow.
19:46They are not going to lend to you.
19:48Credit scoring is not the end of the story at all.
19:51So, my big message to you,
19:53you know, people get in touch with me and say,
19:54my credit score's just me by seven points.
19:55What should I do?
19:57Don't sweat small moves in your credit score.
19:59It's just their illustration.
20:02But do sweat big ones that last longer,
20:05because that's likely an indication
20:07there's something more systemic going wrong in your file.
20:10Kevin has emailed you just on this.
20:12Let's have a look at this.
20:13My energy supply did a hard search on my credit report,
20:16but I decided to switch instead of after getting a better deal
20:20within the cooling off period.
20:22Does this affect my credit score?
20:23It seems to have dropped a little, and what can I do?
20:26Well, yeah, it does affect your credit score,
20:27but who cares?
20:29Would be my honest answer.
20:29I've got more detail on that, though,
20:31because this is what you need to consider.
20:33So, we'll just break it down.
20:35What you've got there is a new credit account or an application
20:38or maybe a cash withdrawal on a credit card.
20:41What happens then?
20:42You'll get a small score dip,
20:44but it'll only last for up to about three months.
20:45And then it'll go back to normal.
20:47It bounced back.
20:47Don't worry.
20:49Listen, it always depends on circumstance,
20:50but this is sort of guidance.
20:52Scale of magnitude.
20:53If you've been applying for lots of accounts
20:55in a short space of time,
20:56that is a more significant problem.
20:58You'll see a bigger drop in your score.
21:00It'll probably start reducing after three months,
21:02and then it should be gone after six months
21:04as long as you don't do any more.
21:06If you've missed the payment,
21:08we're starting to get onto this side now
21:09is the real problem side.
21:11You'll have a much bigger drop.
21:12It'll often go on for six months after it has been fixed.
21:16So, you have to make sure you make the payment,
21:18and it's only improved if you're paying on time afterwards,
21:20or it could be even worse.
21:21Now, if you have an arrear
21:24where you are owing money to a lender,
21:26that is significantly damaging.
21:28It can take two years to recover from,
21:29and only if you manage to make it up to then.
21:31And then the really bad stuff,
21:33the stuff that is going to cause you problems
21:35with all lenders,
21:36if you have a default accounting court judgment
21:39and insolvency.
21:41Bankruptcy.
21:42IVA equivalent.
21:43It is very significantly damaging.
21:46It can impact your score for up to six years
21:48or possibly longer.
21:48Now, I'm talking here about the credit score
21:50that the credit reference agencies give you,
21:53but that is roughly symbolic of the way
21:55that most lenders would think too.
21:57So, it's both the impact
21:58and the time span of the impact that matters.
22:00In the case of that question,
22:02they've gone in a few months.
22:03OK.
22:03How about this one from Sandra?
22:05She's asking,
22:05My son has a phone contract in my name.
22:08He recently had a late payment on the account,
22:10which is showing on my credit report.
22:12Do you have any advice?
22:14Well, just being...
22:16I need to make this blunt,
22:17and I don't mean to be rude, Sandra.
22:18You have a phone contract you're letting your son use.
22:21Therefore, the debt is yours.
22:23It's on your credit file of yours.
22:25Whatever your relationship between the son,
22:27when you give somebody else money in your name,
22:28it's you that owe it.
22:30The first thing you need to do
22:31is make sure you've paid
22:34and pay on time in future.
22:36There's very little you're going to be able to do about it.
22:38The truth is,
22:39it's representing a real thing that's happened.
22:41It hasn't been paid.
22:42That's gone onto your credit file.
22:44It will have a negative effect.
22:45That's what credit scoring is all about.
22:47So, you need to just protect yourself in future.
22:49We can't tidy up things that are real.
22:51We can learn how to correct errors
22:53that shouldn't be on your file.
22:54Let's just ask John,
22:55anything else you can think of that I've not said?
22:56No, it's exactly right.
22:58It's her account, her contract.
23:00So, actually, she's responsible for paying
23:02or showing up on her file.
23:03Bring it up to date as soon as possible
23:05and keep paying on time.
23:06And like you said, it will improve.
23:07It will improve.
23:08Within six months, it will start to get better.
23:10And in two years, it should mostly be gone.
23:12But let me get on to the most important thing
23:14you need to do when it comes to credit.
23:17It's not your credit score.
23:19It's your credit file,
23:20also called your credit report.
23:22You should check your file at least annually
23:24and definitely before any major application
23:27you're going to make.
23:28Because if there's an error that stops you getting one,
23:30you've got too many applications on your file
23:31and you can start to go into a vicious circle.
23:33So, your credit file will list key information,
23:35the products you have,
23:36whether you've paid on time,
23:37any county court judgments against you,
23:39the electoral roll information.
23:40I want you to go through this line by line.
23:43Be a pedant.
23:45Be pedantic and I will give you a tick
23:47because even a small address error on an open account
23:53could block you in fraud scoring.
23:55Line by line.
23:57Now, for a general check,
23:59I would just do one agency.
24:00But if you're about to do a big application by that,
24:02I really mean a mortgage.
24:03I would check all three agencies
24:05because you don't know which one they're using.
24:06And one, if there is an error,
24:07they will pass it on to the others.
24:08It's safer to do it that way.
24:10You can see your files for free.
24:11You can use the statutory credit reports,
24:13which tend to be a bit slower
24:14or these ways are a bit quicker.
24:15For Equifax, Equifax Basic or ClearScore
24:18will give you a free report.
24:19For Experian, go to the free Experian app.
24:21Relatively new that.
24:23For TransUnion, loads of bank websites
24:24and many credit help apps
24:27will also give you a TransUnion report.
24:29Big warning, though,
24:30loads of them will try and sign you up to this.
24:32£15 a month credit monitoring service.
24:34Everything you need.
24:35You don't need that to see your credit report
24:37and it's your credit report that really matters.
24:39So don't accidentally sign up for that
24:40if you don't need to.
24:41Final thought.
24:42We've been talking about student loans already.
24:44Student loan company loans
24:45do not go on your credit file.
24:48That isn't to say
24:49they can't affect your applications,
24:52but they don't affect it as debt.
24:54What they effectively do
24:55is they reduce your disposable income
24:57if you're paying off,
24:58if you're above that threshold
24:59and you're paying off the 9%.
25:00So it's a bit like you earn less.
25:02And that can still lead to rejections
25:04or getting worse products,
25:05but it's not because it's a debt on your credit file,
25:07it's just because you have lower disposable income,
25:10if that makes sense.
25:10Absolutely.
25:11We've got a virtual wall this evening.
25:13Jane is here.
25:14Jane, you've got a question for Martin.
25:16Good evening, Jane.
25:17Hi, Martin.
25:19Right, my question is,
25:20he used to have a good credit rating of about 750.
25:24After we manually underpaid by 55p,
25:30one bank loan instalment,
25:33the bank then incorrectly reported
25:35to the credit reference agency
25:38that we have missed six hold payments.
25:41Didn't find this out until earlier on this year
25:43when I had to check his credit file for something.
25:47We contacted the bank.
25:49The bank admitted they've made an error.
25:51They've corrected the file now,
25:53but it's not really improved his credit score.
25:55It's gone from 277,
25:57which is what it dropped to now, to 377.
26:00And you are absolutely sure
26:02that they have corrected it on the credit file,
26:05that that information is right,
26:06and it's the same credit file
26:07that is of the report that you're looking at?
26:10Yeah.
26:11Well, that's a tough one.
26:12Luckily, I've got John here.
26:13John.
26:14That is a tough one.
26:15So, yeah, my first instinct would be to say,
26:18check all credit reports
26:20with the three credit reference agencies,
26:22make sure it's correct.
26:23It sounds a bit like they maybe haven't updated
26:26the credit reference agencies
26:28with the right information,
26:29but if that's the case,
26:31if it is correct,
26:32there might be other factors
26:33that are influencing the credit score.
26:35So go through your credit report,
26:37have a look,
26:37see if there's something else that's interesting.
26:38How recently was this?
26:39How recent was it?
26:41Right.
26:41So we found out in September,
26:44contacted the bank.
26:46The bank admitted their mistake.
26:47I think this could...
26:49Sorry, they're telling me to go to break.
26:50I think this could literally be
26:52that they've just not updated it in time.
26:54Keep monitoring over the next month to six weeks.
26:57If it hasn't worked,
26:57you apply to have a notification on your file,
27:00a notice of correction put on your file
27:03where you write that this was a mistake
27:04and hasn't really happened.
27:05you write back to the bank
27:06and you put in a dispute
27:07with the credit reference agency
27:08that something is going wrong
27:10and you want it fixed.
27:12And you absolutely have a right to do that.
27:13But I suspect
27:14some just don't update that quickly
27:16and it's probably just an updating issue
27:17and it will fix itself.
27:18It should fix itself, shouldn't it?
27:19Yeah, they update every month.
27:21Go to break, go to break, go to break.
27:22Thank you very much.
27:25OK.
27:25Well, coming up,
27:26we're going to be talking about
27:27what actually happens
27:28when you apply for Credit Plus.
27:30Martin, you're taking us to your credit pub.
27:33My credit pub indeed.
27:34You will find out more.
27:35I'll have some water.
27:35OK, we'll see you after this.
27:49Welcome back to our credit scoring special.
27:51We've got this question
27:52that's come in from Lainey
27:53just for you, Martin.
27:54I have a clear score,
27:56credit score of 1,000,
27:57but I can't get a 0% balance transfer card.
28:00To help me clear my credit card debts.
28:02I keep getting refused.
28:04Why could this be?
28:05Well, I'm hoping you've started to work out why.
28:07Let's go straight back
28:08into the big briefing now.
28:10Well, there you go.
28:11I'd written it there.
28:11What happens when you apply?
28:13You can still be rejected, Lainey,
28:15with a perfect credit score.
28:17Firms use information from your credit file,
28:18but they also use information
28:20from your application form,
28:21including that all-important income
28:23and any past dealings they've had with you.
28:25So if it's a bank
28:26that maybe you've had good dealings with,
28:28it might be more helpful.
28:29If it's a bank you've not had good dealings with,
28:31it might be more likely to reject you than others.
28:33But remember,
28:35lenders' affordability score too,
28:38which is just as important.
28:40Let me delve into that
28:41into a little bit more detail with you now.
28:44Here we go.
28:45So, this is just to give you an example
28:47of the type of things that's going on.
28:48I'm not going to labour it too much
28:50because every lender will work slightly differently.
28:51Here's some of the type of things
28:52they will look at.
28:53Remember, it involves your income.
28:55You'll see how much of this does.
28:56First, your debt ratio.
28:57How much unsecured debt,
28:59loans, credit cards, overdrafts,
29:01not mortgages, not student loans,
29:03do you have as a percentage of your annual income?
29:05You've got £20,000 on credit cards,
29:07you earn £40,000,
29:09that's 50%
29:10and it uses this scale,
29:12there you go,
29:13that's okay,
29:13it's not good,
29:14it's a bit of a problem.
29:16What do you do?
29:16Well, try and reduce your debt
29:17or of course try and improve your income,
29:19which may be a bit more difficult.
29:20The next one,
29:22credit utilisation.
29:23This is the amount of the available credit you have
29:26that you are using.
29:27It works on the same scale as the other.
29:29So £100 debt on a credit card
29:31with a £1,000 credit limit
29:32is 10% credit utilisation,
29:34but it's looking across all of your debts.
29:37Now, the really important thing here
29:38is when this is used,
29:40it only really matters
29:41if you have a high debt ratio.
29:43If you've got a lot of debt,
29:44this matters.
29:45If you've only got a tiny bit of debt,
29:46the fact you're using all of it
29:47isn't that relevant
29:47if it's only a small proportion of your income.
29:49Again, you try and reduce your card
29:51or overdraft debt
29:52or mathematically,
29:53you try and get more credit.
29:55But that causes you problems
29:56in other forms of credit scoring,
29:57so I probably wouldn't bother with that.
29:59It's the second thing they look at.
30:00And the third is your disposable income.
30:03The spare cash each month
30:04after bills and essentials.
30:06Now, with cards, loans and mortgages,
30:08actually, they're mostly doing
30:09a statistical estimate.
30:11They look at what your main outgoings are,
30:12but for your spending,
30:14they're not really looking at your spending.
30:16They're looking at what somebody
30:17in your position
30:18would statistically be likely to spend,
30:19so you can't impact it that much.
30:21But it's still worth
30:22before a mortgage application
30:23just being careful and going frugal.
30:25So you're starting to see
30:26how much more complicated
30:27than the pure credit score this is.
30:29And we get more.
30:30For credit card acceptance,
30:32because your acceptance
30:33tends to be on your credit score.
30:35Will I get accepted or not?
30:37The affordability score
30:38dictates your credit limit.
30:39How much will you be able
30:40to borrow on the card?
30:41Because it's a variable credit limit.
30:43Acceptance is binary.
30:43This is variable.
30:45With a loan,
30:46it's more weighted
30:47to affordability score.
30:48This is why,
30:49think about this,
30:50this really explains everything.
30:52You are one person.
30:54You apply to one lender.
30:55They accept you
30:56for a £3,000 loan.
30:57They reject you
30:58for a £10,000 loan.
30:59You've got the same credit score.
31:01Everything else is the same.
31:02It's not about your credit score.
31:04It's about your affordability score.
31:06Mortgage acceptance,
31:07again,
31:07more weighted
31:08towards affordability scoring.
31:11Now,
31:11one of the things going on there
31:12is probably over-application.
31:15You've applied too many times
31:16and that can be dangerous.
31:18Applying can mark your credit file,
31:19even if you don't get accepted.
31:21So if possible,
31:22don't apply.
31:23Go on to an eligibility comparison
31:26on a comparison site.
31:28That avoids heart searches
31:29and it shows you
31:30your likely odds of acceptance
31:32for different cards.
31:33Then you can home in
31:34on the best card.
31:35Crucially,
31:36these use soft searches.
31:37So you see these searches
31:39on your file,
31:40lenders can't factor them in
31:41so they're safe to do.
31:42I suspect you've been over-applying.
31:44Go and do an eligibility calculator
31:46if your score's low.
31:47Give it six weeks or so
31:48and then try again
31:50and hopefully,
31:50or even three months
31:51and then things may have softened.
31:52Anything else?
31:53Are we good?
31:53Exactly right.
31:54Take a break from applying
31:55for about three months
31:56and then use the eligibility check.
31:58OK, there we go.
31:58We both agree.
31:59Cool.
31:59OK, there's this that's coming
32:00as well from Stephen.
32:02He's asking,
32:03I've got an excellent credit score
32:05but I want to change
32:06to an interest-free
32:07balance transfer card.
32:09Will my credit score go down?
32:10Who cares?
32:11Stephen,
32:11I genuinely don't care
32:13for a very simple reason.
32:15First of all,
32:16it's only your credit score.
32:17It's only an illustration
32:17but more importantly,
32:19I tend to think of
32:20managing your credit worthiness
32:21like saving.
32:22I'm saving up for a rainy day
32:24in case I need it.
32:25What is the most important use
32:26of your credit score?
32:27To cut the cost of existing debt
32:29which is what a balance transfer is.
32:31So use it.
32:32It is far better
32:33to have a lower credit score
32:35and better finances
32:36and cheaper debt
32:37than a good credit score
32:38and you're paying over the odds.
32:39That's what you're building
32:40your credit score for.
32:41If your credit score goes down,
32:42it goes down.
32:43You've got a card
32:44that cuts the cost of your debts.
32:45Hurrah!
32:46Yes, Stephen.
32:49Sorry, Mayim.
32:50Right.
32:50This is coming from Ahmed.
32:52I think quite an important question.
32:53What's the safest checklist
32:54to build a strong credit history
32:56from 18?
32:58Can I have me pub?
32:59Bring me pub.
33:00Now, it's the borrower's return, everybody.
33:06And is it Anne?
33:08Anne volunteered in the break
33:09that she's going to come
33:10and sit in my pub.
33:11Come up the stairs, my love.
33:12There we go.
33:12Just wait until we don't need to get hurt.
33:14If you go and sit over there.
33:18This is the prop.
33:19Do not drink it.
33:19It might poison you.
33:22Okay.
33:22So this, I just want so people
33:24understand how this works.
33:25We're going to play a game.
33:26You're in a pub.
33:27This is what happens.
33:29You're sitting there.
33:30Oh!
33:31Anne, how are you?
33:33Oh, it's lovely to see you.
33:35I forgot my wallet.
33:36Oh, I'm so sorry.
33:38Could you lend me 20 quid
33:40and I'll buy you...
33:41Give it you back tomorrow
33:42and I'll buy you a pint as well.
33:43Now, I have done this
33:47about 40 times before
33:48and every single time I have done it
33:50I have always paid back the next day
33:53and I have always bought a pint on top.
33:55Would you lend me 20 quid?
33:57Because it's you, Martin, I would.
33:59No, but even if it wasn't me...
34:00No, probably not.
34:02Oh, well...
34:03I'm a fan.
34:06There's always one.
34:06Yes, I would.
34:10Well, I'm very glad you said that.
34:12Next example.
34:13Here we go.
34:15Anne, how are you?
34:17Great, thank you.
34:19Oh, no, I forgot my wallet.
34:20Tell you what.
34:21Could you lend me 20 quid
34:22and I'll give it you back tomorrow
34:23and I'll buy you a pint as well.
34:25Now, this person
34:26has done this 30 times before
34:28always forgets to pay back the next day
34:31never buys the pint on top
34:32and always has to be chased to give the money.
34:34Would you lend it to them?
34:36Oh, if their name was Martin Lewis, yes,
34:39but no one otherwise.
34:41No one else, so you're not giving it?
34:42Good.
34:43No.
34:43Final one.
34:46She's hard work.
34:48Simple example.
34:53Hi.
34:54Hi.
34:55Nice to meet you.
34:57Oh, no, I forgot my wallet.
34:58Would you lend me 20 quid
34:59and I'll buy you a pint tomorrow?
35:01You have never met this person before in your life.
35:05If you do not know who they are,
35:06it's not Martin Lewis.
35:08Would you lend to them?
35:10No.
35:11No.
35:11OK.
35:12This is credit scoring.
35:13First example has a good credit history.
35:15We know that they're repaid.
35:16We can predict their future behaviour
35:17based on their past.
35:18They're a pretty safe bet.
35:19Second person,
35:20we predict their future behaviour
35:21based on their past.
35:22They're not a safe bet.
35:23Third person may be lovely,
35:25but you don't know them.
35:26You have no data.
35:27No data gets rejection.
35:29That's how credit scoring works.
35:30Anne, if you'd like to go back there
35:31before they move the putter away.
35:32Thank you very much for that, everybody.
35:36I know we're on the wrong channel.
35:37Get my pub ab here.
35:41OK.
35:42Thanks, chaps.
35:42Well, they do that.
35:44Two biggest reasons people are rejected.
35:46Your past behaviour
35:47and they don't have enough data.
35:49How do you build data?
35:50You need to get a credit.
35:51You need credit to get credit,
35:52but how do you...
35:53But how do you get credit
35:54when you don't have it?
35:56You get what's called
35:57a build or a rebuild credit card.
35:59Easy to get.
36:00They have high interest.
36:01Go on to an eligibility calculator
36:03for a rebuild card.
36:04If you can get them,
36:05there are a couple that give spending rewards.
36:06Tesco Foundation card,
36:08Asda money,
36:08terrible interest rates.
36:09Here's how you use them
36:10at no cost.
36:12Spend 50 to 100 quid a month on them.
36:13Just your normal spending.
36:14Don't spend anything
36:15that you wouldn't spend.
36:16Pay it off.
36:17In full.
36:18In full.
36:19Preferably by direct debit.
36:20Never miss repayments.
36:21Never withdraw cash.
36:22That's always bad.
36:23Never bust your credit limit.
36:24After a year or so,
36:25with no other issues,
36:27your credit worthiness
36:28should improve.
36:29My problem with an 18-year-old,
36:30only do it with an 18-year-old
36:32who's trusted
36:32and will do this sensibly
36:34and not realise
36:35it's just free money.
36:36Just know it's a way
36:37to build their credit score.
36:38You could even do it
36:39with two cards
36:40and don't use credit
36:41rebuilder schemes.
36:41Can you tell again
36:42they're going,
36:43go to break,
36:43go to break?
36:44But hopefully that makes sense.
36:46Get yourself a credit
36:47but use it carefully.
36:49Never overspend.
36:50Pay it off in full.
36:51Absolutely.
36:51Thank you very much, Martin.
36:53Now, coming up next,
36:5410 ways to be financially fit
36:56and the rest of news
36:57you can use
36:57including half-priced Christmas trees.
36:59Well, welcome back to the show.
37:12They are loving
37:13this credit score special
37:15but, Martin,
37:16what I want to know,
37:17how do you actually
37:18boost your credit worthiness?
37:19That's what we want to know.
37:21Well, the honest truth
37:22about this is,
37:23I don't know if I can use
37:24this phrase,
37:24but it's what we called it
37:25when I was growing up.
37:26It's a bit like
37:26going on the pool
37:27financially.
37:29You all right, Anne?
37:32So, the truth
37:33about going on the pool
37:34is there's lots you can do
37:35to make yourself look better
37:36but different people
37:37are attracted to different things
37:38so there's no perfect solution.
37:40But what I've got here
37:42is 10 tips
37:43to make you
37:44financially fitter
37:46and more fanciable.
37:50Here we are.
37:51So, the first one,
37:52use consistent answers
37:54on every application.
37:56Now, what do I mean by that?
37:57First of all,
37:57they like stability
37:58but more importantly
37:59if you get it wrong
37:59you can be triggered
38:00out of fraud scoring.
38:01So, if you could be
38:03a marketing assistant
38:04or a promotions assistant,
38:06don't vary the term.
38:07Use the same term
38:08every time.
38:08If you've got more than one mobile,
38:10use the same mobile
38:10on every application.
38:12Of course,
38:12if your job changes
38:13then you change what you put in
38:14but stability is important.
38:16Next,
38:16get on the electoral roll
38:17if you want.
38:18It's a big problem
38:19for credit scoring
38:19if you're not.
38:20You can still opt out
38:21of the open register.
38:22That's the thing
38:22that stops you getting junk mail.
38:24Opt out of the open register
38:25to not get junk mail.
38:26For a national,
38:27then you can ask
38:28for a notice of correction
38:29and that can prove
38:30your residency and help.
38:32Yes?
38:32Yes.
38:32Yes.
38:33Right.
38:34Finally,
38:34you can snog
38:35or marry who you like.
38:36You have my permission.
38:38Financially.
38:39That will not affect your credit.
38:41What will a joint product?
38:44Mortgage,
38:45loan,
38:45bank accounts,
38:46no such thing
38:46as a joint credit card,
38:47it's a second card holder.
38:48If you even apply,
38:50not have,
38:51but you apply
38:51for a joint product,
38:52that can financially link you.
38:54That means
38:55they can look
38:56at the other person's file
38:57when you're applying for credit.
39:00So if they've got
39:00a bad credit history,
39:01this could kibosh
39:02your applications.
39:03Be very, very careful
39:05before getting joint products.
39:06By the way,
39:07if you were jointly,
39:08had joint products
39:08with someone
39:09and you're no longer
39:10financially linked to them,
39:11then you apply
39:12for a notice
39:13of disassociation
39:14to all the credit
39:15reference agencies,
39:16but you have to be
39:17generally financially separate.
39:19Next one,
39:19fascinating this one,
39:20the first time I've said this,
39:21overpaying your mortgage
39:22may start to boost
39:24your credit worthiness.
39:25Check you shouldn't be saving,
39:26go to a mortgage
39:27overpayment calculator
39:28to check.
39:29This is because
39:30Experian,
39:30the biggest reference
39:31for a reddits agency,
39:32is adding it in its
39:33credit score
39:33and they advise companies
39:34on how they should do
39:35their own credit scoring,
39:36so we're likely
39:37to see more of it
39:38coming in the future,
39:39overpaying your mortgage.
39:41Carrying on,
39:42let's get to more.
39:43Never miss or be late
39:44on repayments.
39:44That is so important.
39:46If you're not good,
39:47but you want to pay
39:48variable amounts,
39:49well, at least set up
39:50a direct debit
39:50to pay the minimum
39:51each month
39:52and you can manually
39:53overpay on top,
39:54but at least that way
39:55you will never miss
39:56a repayment.
39:57Buy now, pay later
39:58is increasingly appearing
40:00on credit reports.
40:01Klarna and Zilch
40:01already report.
40:02The rest are likely
40:04to start doing so
40:05once regulation starts
40:06in the middle of next year.
40:07It might not feel
40:09like a debt,
40:10but buy now, pay later
40:11is a debt.
40:13So, if you pay it off
40:14on time,
40:15it can be positive.
40:16If you miss payments,
40:18it can be negative
40:19for your credit file.
40:20Not for credit files,
40:22it doesn't go
40:22on your credit score,
40:22but it can be negative
40:23for lenders,
40:24can see it negatively.
40:25An overuse of it
40:27could be a danger sign,
40:28so think of it
40:28as a debt.
40:29Don't withdraw cash
40:30on credit cards
40:30is always a bad thing
40:31to do.
40:32It's expensive
40:32and if you do it a lot,
40:33it can be seen
40:34as poor money management.
40:35I know some of you
40:36are saying,
40:36but I do it abroad.
40:37If you're doing it
40:37one-off abroad
40:38because you've got
40:39a specialist overseas card,
40:40that's not so bad.
40:41It'll disappear off your file
40:41in a few months,
40:42the score lower.
40:43But be careful
40:44with that one.
40:45Time application's right.
40:47I talked earlier
40:47about the impact
40:48on your credit score,
40:49but actually,
40:50some things only last
40:51on your credit file
40:52for a set time.
40:53The bad stuff,
40:54CCJs, defaults,
40:55finished bankruptcy,
40:56stay for six years.
40:57Applications only for one year.
40:59So if something's
40:59just about to lapse,
41:01wait a week
41:01till it's gone
41:02before you do
41:02your application.
41:03Makes sense, doesn't it?
41:05Now, one I'm asked
41:05about all the time.
41:07Logically,
41:08if I pay
41:09£1,500 a month
41:11in rent,
41:12that should be
41:12a good indication
41:14that I can afford
41:14to pay £1,500
41:15of mortgage,
41:16shouldn't it?
41:17It should.
41:19It doesn't work like that.
41:20It should.
41:21But it's starting
41:21to be changed.
41:22There are ways
41:23you can apply
41:24to have paying rent
41:25on time
41:26factored into
41:27your credit score,
41:28which could,
41:29of course,
41:29improve your mortgage
41:31acceptability
41:32in future.
41:34So if you're a tenant,
41:35you can sign up
41:36to Canopy,
41:37which reports
41:37to the Experian
41:38credit file for free.
41:40You could sign up
41:41to Credit Ladder,
41:42which will report
41:42to one agency for free.
41:44So using those two
41:45in conjunction,
41:45you can get
41:46two of the three agencies.
41:47If you want
41:48all three of the agencies,
41:49you can pay Credit Ladder
41:51£60 a year,
41:52and you'll get it
41:53to report to all three
41:54of the credit reference agencies.
41:55Clearly great
41:57if you pay your rent
41:58on time.
41:59Clearly not good
42:00for you
42:00if you miss
42:01or are late
42:02paying rents.
42:02Makes sense.
42:03Also worth noting,
42:04some big landlords,
42:07social housing,
42:08landlords with over
42:08500 properties,
42:10have the Experian
42:11Rental Exchange
42:12Initiative.
42:13They should have
42:13told you about it.
42:14That means they're
42:14reporting to credit files,
42:15but you could choose
42:16to opt out,
42:17for example,
42:17if you wanted.
42:18If you're paying rent
42:18on time,
42:19I wouldn't.
42:19And my final one,
42:22don't do little applications
42:23before a big one.
42:24If you want
42:24a credit reward card,
42:27but you're about
42:27to apply for a mortgage,
42:29do it after
42:30the mortgage application.
42:31The mortgage application
42:32is what matters.
42:33Applications do impact
42:34your credit worthiness,
42:36so put things
42:37in the right order
42:38when you're applying.
42:39And those together
42:40is how to be
42:41financially fitter
42:42and more fanciable.
42:44How are you doing?
42:44OK, you have got time
42:49for some quick
42:50news you can use.
42:51Okey-doke.
42:55Right, time
42:56for some quickies.
42:58First of all,
42:59state-owned bank
43:00or financial institution,
43:01NS&I has boosted
43:02its British savings
43:03bond rates.
43:03You can see them there.
43:04They're all over 4%.
43:05Now, these are just
43:06fixed-rate savings
43:07by another name.
43:07Let's not get
43:08overcomplicated.
43:09The rate is good.
43:11It's not top.
43:12It's about 0.2 percentage
43:13points or 0.3 percentage
43:15points behind
43:15the very top
43:16open market
43:17fixed-rate payer.
43:19But many people
43:20want a big name
43:21with their savings.
43:22NS&I is as big
43:23as it gets.
43:24And crucially,
43:25most savings
43:26are protected
43:26up to £85,000
43:27per person
43:28per financial institution
43:29by the state.
43:30This is owned
43:31by the state,
43:32so every penny in there,
43:33even if it's more
43:34than that,
43:34is protected.
43:35So it's a good option
43:36for those with
43:36very large amounts.
43:38Maybe you sold your house
43:39seven months ago
43:40and you want to know
43:40what to do with the money.
43:41Next, a heads up.
43:42You can get
43:43£10 to £60
43:44West End Theatre tickets
43:45if you've got a MasterCard.
43:47Starts next Tuesday,
43:4810am.
43:49I'm doing it now
43:49because Sun shows
43:50sell out quickly,
43:51so you want to be on
43:51at the exact moment.
43:53It's the official
43:53London Theatre
43:54New Year sale.
43:55First dibs
43:56for those people
43:57who got a MasterCard
43:58on 2026 performances,
44:00including Wicked,
44:01The Devil's Wears Prada,
44:02Back to the Future,
44:02The Producers,
44:03and six...
44:05That was just
44:06for my daughter,
44:07by the way.
44:08If you're watching,
44:09I love you.
44:10From tomorrow,
44:11Ryanair won't accept
44:12home-printed boarding passes.
44:13You must check in online
44:14or Varex app first.
44:15If not,
44:16you'll be charged up to 55 quid.
44:17But if you have checked in online
44:19and your phone ran out of battery,
44:21they're no longer going to charge
44:22the 20 quid
44:23for printing a boarding pass
44:24at the airport.
44:24You can now do that for free.
44:25So in some ways,
44:26it's a win for some people.
44:27And then from Thursday,
44:29you can get 50% off
44:30three Christmas trees
44:32at Tesco.
44:33For club card holders
44:34only in-store.
44:35There's a six-foot Nordman fur.
44:37These are all real trees.
44:3820 quid,
44:38so half 40 down to 20.
44:40Three-and-a-half-foot potted tree
44:41for 15 quid
44:42or a four-foot tree
44:43with lights for 20 quid.
44:44And while we're speaking
44:45about Christmas,
44:46next Tuesday
44:47is the big one.
44:50We do it every year.
44:51Big audience,
44:52festive forecast,
44:53the Black Friday special,
44:54Christmas deals.
44:56It's all coming in.
44:57I'm even going to have to sing
44:58at the start of the show
44:59because that has sadly
45:00become a tradition too.
45:02It's all going on,
45:03so do not miss it.
45:04Set your diary,
45:05eight o'clock next Tuesday
45:06and have a pen and pencil
45:07or some note-taking with you
45:08because at the end,
45:09I'm running through all those deals
45:10and I'm going to be running through them
45:11at serious speed, Jeanette.
45:13Well, there you go.
45:16I've got one question for you.
45:18How is your voice doing?
45:19My voice is all right now,
45:20but you know I can't speak out
45:21when I've done the festive forecast
45:22that we're going through next week.
45:23Ladies and gentlemen,
45:24thank you so much.
45:25You've got questions
45:25about Christmas deals
45:27or free cash from bank switching
45:28or children's savings.
45:29I'll be covering them all next week.
45:30Use the hashtag Martin Lewis.
45:31Any questions on what we've done today,
45:33get in touch with that as well.
45:34Jeanette, you've been wonderful.
45:35The audience here has been wonderful.
45:36A round of applause
45:36for John Webb and Anne.
45:42And you know what?
45:44If I drank,
45:45I'd say I'd be off to my pub now,
45:46but I don't really,
45:47so I'll just go and pretend afterwards anyway.
45:48That's it.
45:49Take care, everybody.
45:50Good night.
46:21I'll see you next week.
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