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Monday, July 27, 2015

Maintaining your credit score by legal means is important

By Andrew Reilly

Given the importance of your credit rating when it comes to your finances and things that you are able to achieve, it is important that you stay on top of your credit rating. If your credit score is not as high as it should be, it makes sense to take steps to improve it. This will pay dividends in the short and long term but it is important to be aware that not all steps you can take to improve your credit rating are as effective as others.

However, there are also some steps which should be avoided at all times, which is likely to be the case for a man from Bury St Edmunds who is on trial facing charges of “converting criminal property.” It seems as though the defence being made by Trevor Seeley, facing charges at the crown court in Ipswich, is that the alleged criminal transactions that went through his account were actual attempts at improving his credit rating. We could all do with improving our credit rating but there are ways to go about improving your credit score in the most effective and appropriate manner.

It is claimed that the activity took place between the 1st of January 2014 and March 2014 with the prosecution alleging that money was obtained from an online loan scam and then placed into Seeley’s bank account. From there, Seeley withdrew the money and passed it on to other people.

There are some big steps to take to maintain your credit score

Seeley spoke in court about how he thought these actions may have been “dodgy” but he then said that after speaking to the loans company he was assured that this all above board and perfectly legal. Seeley also claimed that he had been a victim of fraud as he had money which had been borrowed from his brother which was eventually paid out to the loan provider.

As part of his evidence, Seeley claimed that he became involved with this activity when he applied for a £10,000 loan. This was denied because Seeley was informed that his credit rating was too low. He was then informed that money would be paid into his account, under instructions from a man referred to as David Morgan. Seeley only spoke with Morgan by phone and this was when Seeley was instructed to withdraw money and then transfer it over to Morgan by wire.

Seeley claimed that he questioned whether this was legal but money kept appearing in his account and the instructions kept on coming, with the route of passing money changing on occasions.

Credit scores are vital in obtaining finance these days

Seeley, a father of two, admitted that he and his wife had been £60,000 in debt at one point and that David Morgan informed him that carrying out these transactions would boost his credit score. There was one point where Barclays Bank placed a freeze on his account due to their concerns over the activity taking place on the account but this led Seeley to changing his bank. Again, if you were having concerns about the legality of these transactions and then your bank provides you with a big reason to stop, you would think that you would look to change your behaviour.

Michael Crimp represented the prosecution during the trial and he alleged that the money which was placed into Seeley’s bank account represented upfront fees for loans which hadn’t been made by people who operated an online site. In court, Mr Crimp said; “A number of people were conned into parting with their money and their money was paid into Trevor Seeley’s bank account. He then took it out and passed it on. He was a small but important cog in this scam.”

This case, however it pans out, is a timely reminder of how important your credit rating is and what impact it can have on your life. While it may seem as though you have no options at your disposal when you have a poor credit rating, this isn’t the case. With a guarantor loan, you are able to obtain finance, including sums up to £10,000, so you should be able to arrange the finance you need to be able to move on in confidence. While the above case is clearly an extreme example of what may occur when you have a poor credit rating, the importance of your credit rating should never be overlooked.

About the author: Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn't sat behind a laptop or researching a story, he will be found watching a gig or a game of football.

Image license: Trinity Credit Services, CC BY 2.0