Unbiased Guide to Everyone Should Be Looking At Your Free Credit Report When You Are Applying For Further Credit
With the current worldwide financial climate being in such turmoil, even more difficult to come by. But many people don’t realise the importance of free credit reports from one of the major credit reference agencies.
Without realising it, your credit report might be showing data that may hinder your ability to take out more credit. Some of this may not even be your fault. Worse still, it may even uncover that you have been the victim of identity theft!
Those people that have been rejected for credit that they have applied for should certainly apply for their credit report data from at least one of the major credit reference agencies, such as Experian. If you have been declined credit, ask the lender who refused you which of the agencies they were using when they credit vetted you and their contact details. Then write to them asking for a copy of your credit file.
It is also well worth asking for a copy of your credit file before applying for a loan so that any errors, or omissions, can be corrected before you apply. This could prevent a turn down, which would also be recorded on your credit file and might count against you in future application.
If you don’t already know how to check a credit report for yourself, then it is very easy to do. The major credit reference agencies will offer a free service if you write to them and ask them for the file information and there are many online services doing the same. As an early identity theft detection method, you can also join schemes whereby you are notified when certain changes take place on your credit reference file. This would alert you to sudden huge loan applications if someone was trying to steal your identity.
The free credit reports don’t show you exactly how the lenders are going to score you, but they give you a good basis for reviewing what they are likely to be taking into account. In addition, lenders will bear in mind other questions that they ask, such as your history with that lender, your annual household earnings and other details they ask you to give to them.
Your credit report shouldn’t include details of anyone else included within your house, but it will have details of who the credit reference agency calculates are financially related to you, for example a spouse. If this information is wrong, then it can be worth getting it corrected.
As an example, if your husband doesn’t use the same surname as you, but has a better credit rating than you, then you can possibly improve your credit rating by showing yourselves as being financially related.
But, if parent and non-dependent child, or others sharing a surname, live in the same house and aren’t financially related, it is worth ensuring that you are not being marked as having a financial relationship, in case they have a lower credit rating.
P.S. Watch this real case how do I get out of debt video.
