Free Credit Check

Why should I worry about my Credit Report?

More than 3.5 million applications for credit cards, loans and mortgages have been declined in the past year as financial firms tighten their lending policies, new research from MoneyExpert.com has shown. The research, in conjunction with Gfk NOP, highlights just how important it is to be aware of your profile before applying for credit. All the major lenders in the UK share information about their customers' credit accounts with credit reference agencies, such as Experian.

They do this with your consent, which you give at the time you apply for credit. The information they share shows what credit accounts you have and how you are managing them. Together, this information from all the different lenders you have accounts with goes to make up your credit report. When you apply for credit, lenders look at your credit report and use it to help them decide whether or not to give you the credit you've applied for. How well you are managing your credit now, or have done in the past, not only affects your ability to get more, it may also affect how much you can borrow and what interest rate you pay. So it is important that you know what information is on your credit report and that you understand it.


What makes up a Credit Score or Rating?

Nobody has a fixed credit rating. But every time you apply for credit, that application is rated, or scored, by the lender you apply to. Lenders want to make sure they get their money back, so they don't want to give credit to people who can't be relied on to repay it or to people who can't afford to borrow. So they score all the information they have about you - from your credit report and from your application.

From your credit report they can see what type of credit you already have - maybe a loan, a mortgage and a credit card. From the information you give them when you apply they will know whether you have a job. Each piece of information is given a score depending on how important that particular lender considers it to be - and the total determines whether or not your application is successful and sometimes what interest you'll be charged.



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What kind of things will improve my Credit Status?

There are lots of things which will improve your Credit Status including :

1. Make sure you're on the electoral register

2. Make your credit repayments on time. Missed or late payments suggest you are not able to handle money well and are not managing your debts.

3. Owning a credit product such as a loan or credit card helps. One way to improve your credit status is to take out a 'normal' credit card (special low rate cards are sometimes reserved for low risk customers so you may not be eligible if you have a credit history that needs improving). Use your card to buy a few low cost items each month - things you would normally buy with cash. Set up a direct debit from your bank account to clear the whole balance at the end of every month. That way you don't pay any interest, but you do build up a favourable credit history. NB - ONLY SPEND WHAT YOU CAN EASILY AFFORD TO PAY BACK.

4. When applying for a credit card or loan, be careful as a large number of applications within a short period can damage your credit profile. Before making any applications, research the market at www.moneyexpert.com where we can help you find the products you're most likely to be accepted for.

5. Be wary of making several applications for credit cards or store cards all at once (or in rapid succession). Even though you may think you have a good credit history and want to take advantage of several 'good offers' on these products, choose the best one or two for you and stick to them. Applying for lots of cards in a short time will affect your credit rating. As a simple rule, leave a few months between applications for any type of credit - a card, a loan, a mortgage or a mobile phone.

6. Work to reduce the outstanding balances you have on credit cards, store cards and loans. The less you owe, the more likely you are of getting a good credit score.

7. If you can afford it, pay off your credit card balance every month. This tells lenders you can manage money well and only borrow what you can afford.


Having too much credit and/or too many credit products tells lenders that you may be over extended. Plan your finances and make a budget - and stick to it.

 

USE THESE LINKS BELOW TO GET A FREE CREDIT CHECK NOW

 

http://www.annualcreditreport.co.uk

https://www.checkmyfile.com/score.asp