Thursday, 16 July 2009

what actually is a credit report ?

posted by debts.org at 03:23

You may not have thought much about it, but the chances are that you have a credit report. Credit reports log a personal history of your credit, including loans, mortgages, credit card debts and even mobile phone contracts. Your credit report will show how regularly (or not) you make repayments. Lenders will use your credit report to work out whether they are safe to give you credit or not. You can get your credit report, free of charge with CreditExpert. The more you know about your credit report, the better position you will be in to work out your finances. Useful things to know include:

• If you are over 18 and have ever had a credit card, a bank loan or other credit, you will most likely have a credit report. These reports are held by credit reference agencies, and the largest in the UK is Experian.

• In addition to listing your credit accounts, your credit report will show whether repayments are paid on time and in full, and will indicate to lenders whether you are reliable and trustworthy.

• Missed or late payments stay on your credit report for at least three years, and bankruptcies, non-payment of debts and individual Voluntary Arrangements (IVAs) can stay on your credit report for at least 6 years.

• Your credit report shows all of your addresses for the past 6 years, and whether you are registered on the electoral roll to vote. Lenders will use this information to make sure you live where you say you do.

• Another section of your credit report lists the people you share a joint account with, which could include rental contracts, mortgages or credit cards. It is worth getting at least an annual credit report, in case any of these details have changed. The circumstances of your financial associates, in the eyes of a lender, could affect the repayment of credit.

• Information for your credit report comes from public records, including court judgements and the electoral roll. Data is also supplied by other lenders. Some lenders share information about all accounts, even those which are paid regularly and on time.

• Be aware that landlords and employers can also see parts of your credit report, so a bad credit report could even affect your job prospects or the chance of renting a house.

• Lenders calculate a credit score by adding a value to information in your application form and credit report, then adding their own formula. For this reason, your credit score can change with each application, and if you are refused with one lender it doesn´t mean to say that another lender will come up with the same result.

• Before applying for a new credit account, check through your credit report, and if there is anything listed which needs to be bought to the attention of the lender, then contact him immediately. Also ensure all information is accurate and up to date, such as address, financial dependents etc.,

• Make sure you ask for a copy of your credit card at least once a year. Identity fraud is rife in the UK, and by regularly checking your credit report, you can make sure you don´t fall victim to it. Identity fraud includes the theft of your personal information and using it to take over your existing accounts or to set up new ones in your name. Keep track of your credit report, and if you see any suspicious entries, report them immediately.

• Only ask lenders for a quotation when you are shopping around for the best deal. The more your credit report is checked, the more likely lenders will assume you are desperate for money as a ´footprint´ will remain on your file for every application you make.

Check your Experian credit report online with a free trial of CreditExpert, the UK’s leading online credit monitoring and ID fraud protection service.

Labels: credit expert, information, lenders