There are many things to think about when moving into a new home. For most UK homebuyers, protecting their credit is not one of them. Sure, they took steps to improve their credit score in order to get a mortgage.
After securing it, most people think the financial headaches are behind them. Little do they know that relocating may have a negative impact on their credit rating.
Shortly after relocating, some consumers find themselves qualifying only for bad credit credit cards and become concerned. The simple act of notifying parties of the address change can prevent their identity from being stolen and subsequent credit damage. Approximately 534,000 UK residents move each year but only half of them have their mail redirected.
Credit card company Aqua has made things easier by releasing a graphic that helps relocators understand how a move can affect their credit rating.
It also provides steps that home movers can take to limit credit damage. Included in the information is a reminder to notify the DVLA, utility companies, and insurance providers and other financial contacts of the address change.
Aqua also provides instructions on requesting postal mail redirection with Royal Mail for a minimum of one year, an important step in reducing the risk of identity fraud.
This service costs £40.85 for a year and takes just five days to go into effect. Relocators can apply for mail redirection through Royal Mail online or over the telephone.
The more times an individual moves within a short period, the greater the impact on the credit rating. Lenders look at number of relocations when making credit approval decisions.
By making sure they appear on the electoral roll for each address of residence, consumers decrease the likelihood of having to resort to credit cards for bad credit for needed financing.