Credit Checks Information Library

CREDIT CHECKS

Credit Checks – nobody likes being the subject of one, but you can find out what is in your report. Here is how...

What is in Your Credit File?

There is so much mention of credit checks – they are carried out each time you apply for a regular loan or credit card, in some cases even when you open a bank account – but what is actually in your credit file?

Everyone gathers a credit file as soon as they start to take on a mobile phone, rent a flat or home, credit card – any financial product.

Based on your financial 'performance', your credit file shows every time you make a loan/credit application and every time you are penalized for late payments.

The more 'bad marks' your report contains, the less likely you are to be accepted for loan applications, a new car, a mortgage or credit card.

You may also find it more difficult if you have no credit rating – i.e. if you are new to the country and don't have a financial history.

Checkups

Banks and loan companies can access the information in your file whenever you make an application for a product. They can see if you are a 'desirable' customer and whether you pose a large risk to them. For example, if you have unpaid bills and defaults on your file then you are a high risk and may be turned down.

Checking your Own File

You can request to see a copy of your credit file. This is a recommended activity and if done around once or twice a year, you can make sure that the information within it is accurate. For example, you might have moved to a better area or paid off a loan which is listed incorrectly in the file.

You can request to have this corrected.

By checking your file, you can take steps to improve those areas which are holding you back.

How can I request a Copy?

You can either go straight to one of the three main credit rating agencies: Experian, CallCredit or Equifax. This costs around £2 but can take time to arrive.

Alternatively you can use an affiliated company (such as Credit Expert) which allows you a free trial of up to 30 days to view your file. After the free period they can start to charge you – typically around £6 a month. You can choose to terminate your subscription before the free trial period is over. Make sure you do this or the subscription will automatically continue.