Why is it Important to Check my Credit Record?

It is more than apparent that having a good credit record is becoming more and more important. Low rate lenders such as banks, supermarkets and mainstream lenders have tightened their lending criteria’s meaning only those with immaculate credit histories will be able to get their hands on the best deals on loans and credit cards.

As part of the processing of a loan or credit card the provider will carry out a credit search on the applicant. If there are any inaccuracies such as missed payments or defaults, then this will heavily dent your chances of being approved for the best rate credit.

Prior to applying for credit it is definitely worth your time to check your credit record and there are a number of reasons for doing so:

1.     It gives you the chance to see how lenders view you

Most items of credit will stay on your file for at least six years, so while you may have forgotten about that missed payment back in 2007, credit reference agencies won’t.

2.     It gives you the chance to identify any errors

Occasionally, when lenders report the repayment behaviour of a customer, there will be an error which could essentially be damaging your chances of approval. By identifying any errors you can query these with the CRA and/or creditor and hopefully get them rectified.

3.     Assess your score against the criteria of the lender

The majority of lenders will not publish their exact requirements of the applicant however they will often hint at things like ‘good credit required’. Searching on Google, anything above 700 would be classed as a good credit score so if you fall below this number, it’s probably worth avoiding applying with this provider in order to avoid disappointment and a wasted credit search.

4.     It’s free!

Most large credit reference agencies such as Experian, Equifax or Call Credit will offer a 30 day free trial in which you are able to check your credit score. Many choose not to take advantage of this trial as they think it could affect their credit history however this simply isn’t true. When a lender credit searches you this will be a hard search (unless stated otherwise) which will leave a footprint on your file which other lenders will be able to see. When you view your own credit file this will be a ‘soft search’ which will not leave a footprint on your file hence will not affect your credit history.

No time is like the present, so why not check your credit record today? You’ve got nothing to lose.