What about my credit record?
Credit records are used by the lender to determine how much of a risk you could potentially be. Credit agencies such as Equifax and Experian hold personal and financial information about you. Lenders will request information from these agencies in what is called a credit check to look into your financial history such as bad debts, unpaid loans or overdrafts. The report also highlights your history of residence and any CCJ against you.
If you are unsure about your credit history it may prove beneficial to request a copy of it, this can be done online or be requested via telephone. There is a cost involved for this but it is small price to pay. If you do request a credit report ensure you agree with everything that is on it. For any discrepancies you must contact the lender or the creditor in writing with as much supporting evidence to resolve the matter. Any agreed changes are then updated and will be reflected in your credit report.
If you have a very poor credit record some lenders may not provide you a loan and those that will may charge you higher rates of interest.
If you have a good credit history then ensure you keep it that way, as an excellent credit report is worth its weight in gold when it comes to getting the best deal in the market and also leaving yourself open to as many options as possible.
To keep a good credit rating make sure you pay your debts at the agreed timescales, don’t miss payments, ensure applications for future credit are completed accurately
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