All of us will know that we have a credit report and a specific credit score. But how many of us regularly check it or even know what their score is? We all should, especially those that wish to borrow at any point. We take a look at checking credit reports.
Checking Credit Reports – Who is in charge of compiling credit reports?
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 information is contained in your credit 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 months.
Who makes use of your credit history?
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.
Checking Credit Reports – How credit records are used by lenders
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 you are approved for a loan. They look for reliable repayers of credit. and they are fine with debt, as long as you manage it well. Without debt, they have nothing on your report to check reliability for!
Checking Credit Reports – What is the best way to check your credit score and 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.
When Should You Review Your Report?
It’s a good idea to check your credit report before applying for a loan, mortgage, credit card, or any 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 a mark and be a nuisance.
