Credit Report | Why Is Your Credit Report So Important To You?

What Is In Your Credit Report?

Your credit report is held by one of three credit reference agencies whose business it is to collate information about your financial background and past behavior and they format this data into a unique credit report about how you manage your finances.

Your credit report is available online or through the post from any of the credit agencies.

Lenders also have access to your information when they are deciding whether or not to offer you a loan, mortgage or a credit card. Your credit report will influence their assessment of the likelihood of whether you will be able to repay your any loan provided.

Your Credit Report Information Comes From Two Sources:

Your credit report information comes from two sources1. Public records, such as court judgments’, individual voluntary arrangements and bankruptcies. Your credit report also shows whether you are registered to vote – lenders use this as a precaution against fraud, to check that you are who you claim to be and live where you say you do.

2. Information from lenders and financial institutions, such as records of the number of loans you have and whether you have ever missed a repayment.

It’s important that all this information is as up to date as possible and correctly reflects your circumstances. Lenders will then make the best-informed decisions whether or not to lend you any money for a loan, mortgage or a credit card.

The Credit Report Blacklist Myth

If you do get turned down, the obvious question is “Why me?” swiftly followed by the nasty suspicion, “Maybe I’m on a credit blacklist.”

The good news is that you’re not. In fact, there’s no such thing as a credit blacklist. But there is a host of reasons why you might be rejected.

Why Check Your Credit Report?

If anything in your report is out of date or gives a misleading picture of your willingness or ability to repay a loan, mortgage or credit card, it can affect your chances of getting the best deals. It can even lead to outright rejection by lenders.

For example, you may have separated from a partner who has since run up debts but, because you have still got a joint account, his or her payment behaviour could be affecting you. You won’t see their credit data on your report but you will find a note of any financial association.

Or you may have shopped around for the best offer, without realising you’re your enquiries have been registered as multiple applications. These should show as quotation searches. If they are down as applications, lenders could think you are desperate for money, have over-extended yourself or even that a fraud is being planned.

You could even discover applications and credit accounts in your name that you did not ask for. In that case, your identity may have been used fraudulently.

If you find anything you disagree with or would like to clarify the circumstances surrounding an entry, then you should contact the credit reference agency and ask them to put the record straight.  They will normally want to carry out an investigation or they will request proof of your statement.

Your thoughts, experiences and comments are welcome. Leave your thoughts and experiences below if your credit report has ever affected your application for a loan, mortgage or a credit. credit report

 

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