MONEY
• Be prepared to give the lender a contact telephone number in case they need to check any details with you as part of your application;
• Make sure you are registered to vote in the UK, as lenders will check the Electoral Register when considering credit applications. If you are living at home or at your parents’ address when you are not posted overseas, you may want to give the lender this address as well;
• Ensure you keep up to date with your repayments on any other financial commitments you may have, such as mobile phone bills, credit card repayments and any other loans, as lenders will check how you have managed your finances in the past;
• Consider setting up direct debits to make these payments every month if you are posted overseas.
Top tips for choosing a lender There are a number of financial institutions that offer credit. When you are thinking about which one to approach, you should take into consideration the following: • If you already have a relationship with a financial organisation, such as a current account with your bank, you might want to apply for credit with them as they will know you and your financial situation, which will allow them to better assess the risk in lending to you;
• Whichever lender you approach, ask them upfront if they have any special procedures when dealing with applications from people in the Armed Forces.
Top tips for applying in person or over the phone
Where it is possible, apply for credit in a branch or over the phone. If you are already posted overseas and want to apply for credit from a UK based lender, you may still want to apply by telephone, as you can explain your circumstances in full to the lender.
Telling the lender as much as possible about your circumstances will give your application a better chance of succeeding. • If you are applying for credit at a branch, or over the telephone, tell them straight away that you are serving in the Armed Forces, so they can refer you to any specialist staff who deal with such applications if necessary;
• Check with the lender if there is any particular information you may have to provide because you are in the
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Armed Forces, for example your personal identification number, a MoD Statement of Identity, or a letter from your Commanding Officer.
Top tips for applying online • If you wish to apply for credit online, find out first if the lender’s systems are able to recognise BFPO addresses. The majority of online lenders provide either a telephone number or contact point for raising queries in connection with credit applications;
• If they do recognise BFPO addresses, you are likely to be able to proceed with your application on-line. If they do not, you might have to call the lender;
• Some internet-based lenders advertise the fact that they can help armed services personnel to find loans – you may find this helpful;
• If possible, try to make sure that the company you are dealing with has a recognised consumer credit licence (from the Office of Fair Trading) and gives you all the information you need about the credit product you are applying for, including interest rates.
Top tips for after you have applied for credit • If you have not taken out credit before, you may be given a low credit limit and/or a higher interest rate than you expected. This is normal for people with little or no credit history, as the lender does not have sufficient evidence which shows how well you can manage credit. If you pay off the amount you have
borrowed on time, this will help you to build-up a good credit record;
• Some lenders may ask you to nominate someone they can speak to about your account while you are away on active service. This could be a friend or a relative who you would agree to the lender making contact with where necessary;
• If a lender declines your credit application, you can ask them why it was turned down. You can also ask them to look again at your application – sometimes a person may be able to make the decision to lend where an automated process was unable to make exceptions;
• Make sure you explain all your circumstances when asking the lender to reconsider your application, and provide whatever extra information they request;
• If you feel you have been treated unfairly by the lender, you have the right to make a complaint. If you remain unsatisfied with the lender’s response, you can complain to the Financial Ombudsman Service. This is a free and independent settler of complaints between consumers and financial service providers (www.
financial-ombudsman.org.uk)
For futher information go to:
www.gov.uk/ government/publications/financial-top- tips-for-service-personnel.
Also try MoneyForce a new financial awareness and training website specifically tailored for Service personnel and their families.
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