What Can a Credit Report Tell You?

If you need to know what your credit report is, how it can help you and where to find it, then look no further. Your credit report is a very handy piece of information which helps you to understand your eligibility through the eyes of lenders.

Once you understand your credit report and how it works, you can focus on keeping your credit rating as healthy as possible in the future.

A credit report is a record of your credit activities and it lists any credit accounts or loans you may have, the balances of each and how regularly you make your payments. Your credit report will also contain information about any actions that have ever been taken against you because of unpaid bills. Your credit report contains your credit rating and credit score.

Your credit report is compiled using information from two main sources: public records and information provided by lenders and financial institutions.

Public records include electoral roll information, court judgments, individual voluntary arrangements and bankruptcies.

Information provided by lenders and financial institutions can include credit accounts, credit applications and financial associations.

The core part of your credit report is your credit history, which lists your credit accounts, the date they were opened, the credit limit or loan amount, and whether you have missed any payments.

Account details stay on your report for six years after you settle a loan or close a credit card. If you simply stop using a credit card but do not close the account then this will remain on your credit report so it is worth bearing that in mind.

The contents of your personal credit report can play a significant role in a lenders decision on whether to give you credit or not. Your credit rating may also affect the interest rate you are offered by lenders and if your credit rating is poor this could result in more costly borrowing.

Factors other than the information held on a credit report may contribute to a lending decision, for example the information you provide on your application form, though your credit report usually plays a central role in lenders decision making.

A company that gathers and sells credit information is called a credit reference agency in the United Kingdom. The three main consumer credit reference agencies in the UK are Callcredit, Equifax and Experian.

You have the right to view the information contained in your credit report to make sure it is accurate and if any discrepancies are found, you are entitled to apply to have them corrected.

Since your credit report influences quite a lot of things, from applying for a mobile contract to a mortgage and even renting a property, it is a good idea to protect your credit rating by making loan and bill payments on time and by not taking on more debt than you can handle.

It is a good idea to check your credit rating and score regularly, quarterly for example, to ensure the information held is accurate. You can request a free credit report from some a credit reference agencies so organising your finances needn’t cost you a penny.