Credit ratings are crucial for everyone wishing to borrow money or who utilises money in their daily lives. With an excellent score, you’ll be able to get the best deals on the market at the best prices. A lower credit score, on the other hand, will limit the amount of money you can borrow. Furthermore, if lenders do approve you, the rates you’ll be charged are likely to be higher than those offered to people with a clean credit history. As a result, it’s a good idea to check your credit report on a regular basis to determine if it’s in good shape. Here’s a guide on how to check credit reports.
How To Check Credit Reports – Credit Bureaus
Credit reference agencies (CRAs) in the United Kingdom compile information on how well you manage your finances and make payments.
There are three different types of CRAs:
Experian
Equifax
TransUnion.
Each of them has a credit report (or credit file) on you, however the information may differ significantly from one agency to the next. However, the general conditions are the same.
What’s In Your Report
The following information is usually found on your credit report:
- A list of all of your credit cards. This applies to bank and credit card accounts, as well as other forms of credit.
- Outstanding loan agreements or utility company debts are examples of this. The lists will reflect whether you have paid timely and complete payments.
- Missed or late payments, as well as defaults, will typically remain on your credit report for six years.
- information about anyone who has a financial connection to you. For instance, if you have a shared credit card.
County Court Judgments, house repossessions, bankruptcies, and individual voluntary agreements are examples of public record information. These are also kept on your report for six years. - Your current account provider, but only overdraft information.
- Details from the electoral registration.
- Date of birth and name.
- Both current and former addresses are provided.
- Any occasions in which you have committed fraud or where your identity has been taken and you have committed fraud.
Other personal information, such as your salary, religion, or criminal history, is not included in your credit report.
How To Check Credit Reports – Who Is Looking At Your Report?
When you apply for credit, you will be asked to give permission for your credit report to be checked by the credit provider.
Employers and landlords can also look at your credit report, although they’ll normally only view public documents like your electoral register information, insolvency records, and CCJs.
Keep in mind that while looking at your credit record and considering whether or not to lend to you, different lenders check for different factors. They do, however, employ reports to check your track record of repaying loans on schedule and in full. It is an issue of trust for lenders. Your credit score will determine whether or not they will lend to you and at what interest rates.
Checking Your Report
All credit bureaus are required by law to give you with a free copy of your credit report. You can read the report online or request a printed copy.
If you haven’t requested a copy of your credit report from all three major credit bureaus or if you haven’t checked it in a long time, it’s usually a good idea. This is because they may have different information from different credit providers, despite the fact that there is a lot of overlap.
And When?
It’s a good idea to check your credit report before applying for a loan, mortgage, credit card, or other type of borrowing. This is especially true if it has been a long time since you have looked at it. It’s usually a good idea to double-check it from time to time to ensure there are no errors. You might even notice missed payments you weren’t aware of.
You are free to check your credit score as often as you want, and it will have no effect on your credit rating or score. There is a record on your credit report only when you apply for credit and lenders search your credit report. As a result, it is critical not to apply for credit with a variety of different companies. It will leave an imprint.
