| |
| |
| Credit Information | |
|
|
|
Your Credit Rating and How To Check It
There is a lot of confusion surrounding UK credit ratings, credit scores, credit blacklists, credit reports, and credit files. This guide to your credit rating aims to give you the facts you need. What's in a Credit File There are two major credit reference agencies in the UK, Equifax and Experian, who maintain credit files on virtually every adult in the country. Almost all companies that give you credit terms will supply information to one or both of these two credit agencies. Therefore, your credit file is likely to contain information on all your existing credit and loan arrangements, such as personal loans, mortgages, credit and store cards, bank accounts, etc. In addition, your credit record will contain information on any late or missed payments and the amount of the original debt still outstanding. The credit reference agency files also contain electoral roll information for your address and court records relating to you. It is this information which allows prospective lenders to confirm your address and also see if you have any outstanding CCJs (County Court Judgements). Whenever a mortgage lender or other company is assessing an application for credit, they will check the details held on you by Equifax and/or Experian. The reason they do this is because, by law, they are not allowed to request any information about you from any other companies with whom you have a credit agreement. Also, by contacting one of these two agencies they can gain access to your entire credit history with just a single request rather than having to gather the information from multiple sources. Each time a lender makes a search of your credit file, that search will be recorded and added to your file, leaving a credit check "footprint". Therefore, it is easy for a prospective lender to see if someone has been "shopping around" for credit, and this in itself could be a deciding factor in whether or not they agree to give you a mortgage. Your credit file will also include details of other people living at your address if they are financially linked to you, or if the credit reference agencies think they are financially linked to you. In this way, other people's bad credit history can sometimes drag down your credit score. But if you find you are wrongly linked to another individual, you can write to Experian and Equifax and ask them to correct the mistake. How can I see my credit file and correct any mistakes? Under the terms of the Data Protection Act, the credit reference agencies Equifax and Experian are required to provide you with a copy of the information they hold on you in return for a small administration fee. At the time of writing (2004) the fee for each agency is £2. Your details are supplied by post, but you can request a copy of your file by telephone, post or email. Details or how to apply can be found on the Equifax and Experian websites. Remember that because some companies supply information to Equifax, some to Experian, and some to both, you will need to order copies of your file from both agencies in order to get a full picture of your credit record. Alternatively, there are online services that will allow you to undergo a free credit score check, as well as download (for a fee) a copy of your full credit report. If, after having obtained a copy of your credit file, you find that it contains errors, you can take the matter up with Equifax and/or Experian and ask them to correct the mistakes. Full details of the procedure for correcting your file are available on the companies' websites and are also sent in the post along with the copy of your credit file. Credit scores, credit ratings, and credit blacklists First of all, let's dispel a popular myth. A lot of people think that there is a "blacklist" you can end up on if you have a particularly poor credit history, and that if you are on this list you will automatically be refused credit. This is simply not true - there is no such thing as a credit blacklist. If you have been refused a mortgage or other form of credit, the reason will be because your credit score was not high enough. When a lender requests information about you from a credit reference agency, they apply a mathematical formula to that information in order to give you a credit score. Different lenders will use slightly different factors to create the score. Also, the definition of a good or acceptable score will vary from one mortgage lender to another. Therefore, it is quite possible to be turned down by one lender but be accepted for a mortgage by another. Given that you are potentially worsening your credit score every time you approach a lender about a mortgage and they run a credit check on you, and given that different lenders will have different criteria for assessing your credit worthiness, it makes sense to talk to the experts right from the start if you are looking to take out a mortgage but suspect you may be hampered by a poor credit record. If you're worried that a poor credit record may affect your ability to obtain a mortgage or remortgage, you should take the time to find a mortgage adviser who specialises in finding mortgages and remortgages for people with credit problems. ------ Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place. David Miles is the editor of Clean Slate Mortgages - a website dedicated to helping people with credit problems obtain a mortgage or remortgage. The site also contains articles on debt consolidation, credit cards, and loans.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Five Debt Negotiation Facts These five debt negotiation facts along with a few debt reduction planning tools gives you the ability to control your own debt. For many people today credit card debt is a mounting problem and very few know how to successfully negotiate debt settlements. 19,178 Identity Theft Victims Per Day - Are You One Of Them? Identity theft statistics are shocking. And we are told that it will only become worse, before it gets any better. Bankruptcy Myths Busted The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy's ability to dissolve debt and give the debtor a fresh start. Credit Cards For People With Bad Credit Scores Sometimes life lands you in a situation that causes your credit to suffer. A job loss or illness can send your credit rating south leaving you with nothing to do about it. Credit Repair Companies and Credit Counseling Let's be crystal clear, right up front. Paying someone to "fix" your credit is a waste of your time and money, since the negative issues that are temporarily removed from your file will only reappear again in a couple of months. Credit Cards or Store Cards - Which Is Better? Introduction In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers. The purpose of this article is to provide a general overview of major credit cards and store cards to aid consumers in making decisions regarding which lines of credit lines would be the best for them in a given set of circumstances. Building A Credit Report Lenders Will Love You For Will lenders really love you for having a good credit report score? Love is not the right word of course; lenders are after your money, and never forget that. But the lender's representative will love dealing with your credit application if your credit report is good. Comprehending a Credit Report Obtaining a credit report is an excellent way to begin taking control of your financial future. It's recommended that you review your credit report once a year, not only to be aware of your standing with creditors but to also keep abreast of errors and fraud. Common Credit Score Myths A lot of credit score myths about fico score ratings get spread around and some of them are just outdated information. Sometimes even lenders can give you the wrong advice and it can get confusing. How To Use Your Credit Card For Ultimate Financial Advantage Using a credit card wisely is an important step in building a great credit rating. If you're trying to re-build your credit or if you're young and just starting out, pay close attention the next time you receive a new card offer in the mail or online. Why Does FACTA Matter to Me? FACTA stands for Fair and Accurate Credit Transaction Act. FACTA is the law which allows any American access to their credit report once per year. Read and Understand Your Credit Card Statement Have you ever looked at your credit card statement and ended up just scratching your head in frustration? Well join the club! But don't take any comfort in the fact that you have plenty of company, because lack of knowledge can cost you?.right on your credit report, and once there can stay with you a while. Credit Cards - The Basics How Lenders Operate - And How They'll Make a Tidy Fortune from the UnknowingCredit card companies might seem like immensely clever, money making enterprises that exploit every loophole to maximize the interest payments - and profits - they are taking from you every month. Nothing, however, could be further from the truth. Credit Counseling Basics Credit counseling is an option you might want to consider if you are having financial problems. The stress can be overwhelming when you have creditors calling you daily to collect money that you simply don't have. Do You Know Whats On Your Credit Report ? It is important to know your credit rating for a number of reasons. Believe it or not there may be errors in your credit report, and it is essential that you repair them immediately. Building Good Business Credit After Bad Credit Can you establish good business credit if you have bad personal credit? The answer is yes.. The Hazards Of Your First Credit Card You probably don't need me to tell you credit cards are easy to get a hold of; at least, that is so in the US and UK. How many weeks pass without a glossy brochure promoting a credit card popping through your letter box? And that's just your mail; the tv advertising budgets for credit card promotion are enormous, with some famous faces often adorning your screen, smiling beautifully as they tempt you. Commercial Collections: Business Finance Booster Shot Commercial collections: fixture of the new B2B cultureIf you're in the business-to-business field, or even if you're a consumer products business that works through third-party distribution channels, you probably know what it's like to check your mail anxiously each day, sifting through all the bills for that payment that was supposed to have been in months ago.It wasn't supposed to be like this. Credit Damage: Getting Compensated for Your Loss Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured - tangible goods and services. Credit Score - Reporting Your Financial Health Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not.
|
| home | site map |
| © myfinancialsolutiononline.com 2007 |
