Know Your Credit Report
Have you ever wondered why all your credit applications to lenders are denied? One of the tools commonly used to assess whether you qualify for a credit or not is credit file or report. Perhaps you might be wondering about who makes your credit report compilation. In UK, three main firms are responsible for compiling the information on how you manage your credit and pay bills. These companies are Callcredit, Experian and Equifax.
What is contained in the credit file?
It is very much important for you to understand what is contained in your credit report and how it is used to assess your eligibility for a credit or loan.
- The report will have your name and date of birth.
- Previous and current addresses.
- A list of credit accounts that you possess. These accounts include credit card and bank accounts. Included in the list are outstanding repayments on loans and utility companies. These reports indicate whether you have completed your repayments in full and on time. Late or missed repayments will remain on your credit report for at least six years. Court judgements on unsettled debts and bankruptcies will also take the same period in your report.
- Included in the report are also details of those who have financial links with you. That will bring the impression that you are on a joint credit with the parties listed.
- Public record information will also be on the report. This information include County Court Judgments, also Decrees as in Scotland. Others include bankruptcies and house repossessions, which also last for six years from the period they occurred.
- Details of overdrafts with your current bank account provider.
- Your registration details on the electoral register.
- The CIFAS section will also be in the report and will contain any record of fraud you’ve ever committed.
However, note that the report does not contain your personal information such as criminal record, religion, or salary.
Who is authorized to look into your credit report?
Your credit provider has authorization to look into your credit report, and is authorized by you. This happens when you make an application for credit. The term credit provider does not only mean banks, credit card companies and building societies, but it also includes mobile phone companies and mail order companies. As in the case of mobile phone companies, they have the right to check your credit report only if you are on a mobile contract (they won’t check it if you are on pay-as you-go).
Your landlord and employer are also capable of checking into your credit report, though to some limit. They will only view public record information, such as County Court Judgments or electoral register information.
Where can you obtain your credit report?
The 3 credit agencies in UK are obligated to provide credit reports to their respective owners, under £2 charge. You can also have access to your report via requesting a written copy or online. Callcredit operating under Noddle brand name does offer you free access to your credit report for lifetime; hence it’s worth making an application rather than making payments for statutory report.
If you haven’t checked your credit report for quite some time, it is advisable to get report from all the three agencies. This is because the information may vary as different credit agencies may have information from different credit providers