A credit report is a record of your credit history and whenever you apply for a loan or credit, potential lenders will conduct a credit search and will have a look at your credit report in order to help them decide if you are a suitable candidate for credit or not. What they want to know is if you are likely to default on your payments and if they think you might be, then you are likely to be rejected.
What information appears on your report?
If you are not on the electoral roll then you are unlikely to be able to get credit at all. If you are on the electoral roll and you have any kind of credit history you will have a credit report (everyone has a credit report - it just means it is thin if you haven't got a credit history). The personal information kept on your report includes your name or any names you have been known by, any financial associations you have with other persons or joint applications for credit, your current address and any previous addresses, and your date of birth.
Also on your report is your payment history and balances relating to your credit accounts, credit cards, loans and such like. If you are late with payments, have missed payments, or defaulted on accounts, had any county court judgements against you or have been bankrupt then potential lenders will be able to see all that. They will also be able to see if you have a CIFAS warning which indicates fraud has occurred from your address. Information on your credit report remains there for a period of six years.
What is a Credit Score?
A credit score is based on information gathered from your credit report and indicates how credit-worthy you are. If you have made payments to your accounts on time every month then this will improve your credit score. However, missed or late payments or defaults on your account, frequent address changes or any other 'unstable' activity will have a negative impact on your credit score. Each time you make an application for credit the credit search conducted by the lender is recorded on your report. It is worth bearing in mind that doing large number of credit applications in a short period of time my impact your credit rating. Not all lenders have the same criteria for lending so you may be rejected by one lender but accepted by another.
Getting a copy of your credit report
It's a good idea to keep a check on your credit report from time to time to make sure that there are no errors on there which could prevent you from getting credit in the future. Mistakes do happen but fortunately they can be corrected.
There are two main credit reporting agencies who can supply you with a copy of your credit report and these are Callcredit, Equifax and Experian. You can obtain a copy of your report by writing to these companies with full details of your current and previous names and addresses, enclosing a £2 cheque or postal order and they will send it out to you by post. Alternatively, you can apply online for a copy of your credit report and view it immediately.
------
To monitor your credit score you need to see what your credit report says. You can then make decisions to improve your credit rating. View your
credit report at Callcredit Check.
