Credit reports are very powerful things – a good one will open many doors for you and a bad one can make it little harder to get to where you want to be. If you’re looking to get any type of credit, be it a guarantor loan, a mortgage or even a mobile phone contract, a good credit rating will give you a better chance at succeeding.
Credit reports are very powerful things – a good one will open many doors for you and a bad one can make it little harder to get to where you want to be. If you’re looking to get any type of credit, be it a guarantor loan, a mortgage or even a mobile phone contract, a good credit rating will give you a better chance at succeeding. Of course, each of the examples above use credit reports differently. A mortgage provider will place huge importance on your financial history to assess affordability, whereas a guarantor lender will also take into account the guarantor’s credit score to assess the application fully. However your credit report is used, it’s important to understand what it looks for so you can take steps to improve it should you need to. The Electoral Roll You register with the electoral roll in order to vote. It basically proves that you are who you say you are and links you to your current property. If you are not registered with the electoral roll, then some lenders may turn you down on the basis of this alone. It’s free and easy to register with your local council.
Your Borrowing History Credit you’ve taken out in the past and which you are currently paying off will be listed on your credit report. If you have missed any payments in the last 6 years then this will also show. Borrowing history will show credit cards, store cards, personal loans and mobile phone contracts. A lender can get a good idea of how much available credit you have used/are using and may use this information to work out whether borrowing further cash is affordable for you. Public Records If you have entered into a Debt Management Plan, an Individual Voluntary Arrangement or have been declared bankrupt within the last 6 years, this will show on your file and may make it difficult for you to obtain credit. County Court Judgements will also appear on the report. These may be taken out against you if you owe money and haven’t paid it back – a clear warning sign to lenders. What Isn’t Included? Although it seems like a lot of personal information is contained within a credit report, they certainly don’t paint the whole picture. Your bank account balance, your income, driving convictions, any criminal records, your race and religion are not included in the report so you will not be turned down for credit based on these factors.
What if my Report is Bad? If you’ve missed payments in the past or have other issues with your credit report, then it is still possible to obtain credit at a reasonable rate. Guarantor loans look at more than just your credit report and will treat each application on a case-by-case basis. You can view your credit report online via any of the three main credit reference agencies; Experian, Equifax and Callcredit. You can avoid the small fee by signing up for a 30-day free trial and cancelling before the 30 days are up.