The Importance Of Credit Record And How To Improve It

The Importance Of Credit Record And How To Improve It

Your credit record is important to determine your creditworthiness and capacity to pay your creditor or lender. Having a negative record on your credit file could make it hard for you to secure for credit or loan. Let us show you the significance of your credit report and on how you can improve it.

What Is A Credit Record?

A credit record contains your financial file or history. It contains information about your debt, arrears, missed payments and the payments you’ve made to your credit or loan.

What Are Posted On My Credit Report?

Yoru credit report implies your ability and attitude towards debt payments. It portrays your financial history that includes the bills you paid on time, the total debt you have and how frequent you applied for a loan or credit. It will show if you have arrears, or when you made partial payments to your debt. Any insolvency record or County Court orders are also listed on your report.

Your personal details are also listed on your credit record. These include:

tickYour current or past home address

tickCredit applications or appeals for a court order

tickCredit review by lenders and creditors

tickFinancial association with anyone such as in joint debt and loans

Your credit record is used by creditors and lenders to evaluate risks in accepting your loan or credit application.

How Is My Credit Record Created

Thre are three main crediting agencies that administer and manages your credit record. These are:

tick(CRA) Experian

tickEquifax

tickTransUnion

Lenders or creditor, as well as banks and utility companies, had to report matters concerning finances on these three agencies. This is the main reason why any arrears on your utilities, or consumer credit debt can affect your credit record.

Should you need to build your credit, check for a CreditBuilder cards here…

Who Can Check My Credit File?

Potential lenders or creditors are likely to perform a credit check when you apply for a loan or credit to decide whether to approved or reject your application. Your credit report implies your ability and capacity to afford your credit or loan. This can help creditors and lender determine the chances of recovering their money back.

Additionally, any negative impact on your credit file, makes it hard for you to obtain credit or loan; but, you can try to pursue qualifying for credit products that are designed for people with bad credit.

When Can Someone Check My Credit?

Someone who needs to review your creditworthiness may resort in checking your credit record. These are your potential lenders or creditors who have to decide whether to accept or decline your application. Their decision will be based on what your credit record implies.

Following are some of the application that requires credit check:

tickCar finance or conditional sale

tickMobile contracts

tickInsurance policies that are paid each month

tickCredit cards

tickMortgages

tickLoans

tickCurrent Accounts

Also, each time a company does a hard credit search, it can show up on your credit history. This can imply to lenders and creditors that you do not have enough money on your account reason why you are desperate to secure funds.

Where to Find My Credit Record

You should check your credit record and review if the data are all accurate. This can be done by checking your credit record with a credit reference agency such as :

tickcheckmyfile

tickClearScore

tickCredit Report

tickEquifax

tickNoddle

These credit reference agencies offer a detailed or comprehensive view of your credit history, known as a statutory report, for a small fee. 

Find out more about how you can improve your credit…