Why you should obtain a copy of your credit report
It’s a simple fact some credit reports will contain errors due to the sheer amount of data now held about us all.
You may already be one thousands of us who in the past have found errors in our bank and credit card and other financial statements, some lenders do make mistakes from time to time due to simple human error.
When they report your balances and limits to the credit agencies each month, these errors can be transferred as the agencies have no way of checking the accuracy of each record - the data belongs to lenders, not them, they simply hold it and report it errors included.
For this reason you have a statutory right to have credit report errors corrected quickly and free of charge, so it makes sense to check your credit report regularly especially in the period of financial instability. Unless the information held about you is correct, you may be declined credit altogether or may pay more in interest on credit card’s loans and mortgages and as you know a higher interest rate can cost you thousands even tens of thousands over the term of your mortgage.
Checking your credit report regularly is also important tool in the fight against identity theft Britain’s fastest growing white collar crime. You can see if there are any searches or accounts that you don’t recognise as yours, and identify quickly if someone has been applying for credit in your name.
If you’ve already been declined credit you can check your credit report to see the information that a lender would see. Your credit report and the application form you submit are the main sources of information that a lender will base their decision upon.
Credit checks are also regularly performed when you apply to rent a house, flat and, in some cases, by employers when it’s required by law before giving you a new job.
Services like the Credit Expert from Experian will monitor your file and alert you of any suspicious activity that may arise, you can sign up to a 30 Day Free Trial of Credit Expert today by clicking here.
What is a credit report and how does it affect me?
Many lenders will search at least one credit reference agency’s when you apply for credit. They search your current address, and sometimes your previous address depending on how long you have been there for information relating to you. As each credit reference agency has different customers, your credit report will differ slightly , depending on which credit reference agency is searched.
Most credit decisions are made using a process know as credit scoring. Credit scoring is considered the fairest way of assessing an application for credit, because it is unbiased and treats everyone in the same way using a standard set of rules. Tests have shown that credit scores based on a search of your credit report can assess credit applications much better than human judgment can. They also take account of the fact that credit reports vary slightly from different agencies. If you wish to see your whats your credit report, Experian the UK’s number one credit reference agency provide a service know as Credit Expert which lets you view a copy of your credit report instantly online free for 30 days. And for a small fee of £5.95 they will also calculate this information into you national credit score.
Alternatively you can write to the credit reference agency’s including a fee of £2 and request a statutory copy of the information held on you which should be dispatched within 7 working days this however will only include the information held on you not you credit score.
Your credit report section by section
Your payment history – Commonly shows balances or repayment information from credit card and store card accounts, any loans you may have, mobile phone accounts and some bank accounts. Information from these are reported monthly to the credit reference agency.
The electoral roll - Quite simply displays any information about you held on the electoral roll.
Court information - This section will show insolvency records and any CCJ(County court Judgments) Registered against you.
Other Information - The final section of the report may contain gone away warnings and fraud warnings as well as the information on any company’s that carried out a check of your file.
As many lenders share your information with more than one credit reference agency, there’s little difference in your credit rating, no matter which credit reference agency is used. Each of the three credit reference agencies usually has enough information about you for a lender to make a well informed decision on whether its a good idea to offer you credit or there service.
How to Obtain Your Statutory Credit Report
It is your right to be able to obtain a copy of your statutory credit report by post from any of the credit reference agencies below.
Send a cheque or postal order for £2, and your name, full current and any previous address, and your date of birth to:
Callcredit Ltd Consumer Services Team, PO Box 491 Leeds LS3 1WZ
Experian Ltd Consumer Help Service PO Box 8000 Nottingham NG80 7WF
Equifax Credit Report Advice Centre PO Box 1140 Bradford BD1 5US
A copy of your statutory credit report should then be sent to you within 7 working days in the post.
If you want to dispute information on a credit report you recieve (You should first try to sort the problem out with the lender, were appropriate), If this fails you can write to the same address detailing all the informationt that is wrong and request your file be amended.
