Woods Estate Agents, Bradley Stoke, Bristol

Why you should check your credit rating

Posted on Thursday 4th October 2012 at 2:42 pm by SH (Editor)

[Sponsored Article] It doesn’t matter how much you earn each month, the vast majority of people need credit at certain times in life. Usually people will turn to credit when they need to make a large one off payment, or have an unexpected cost which they have not budgeted for. While taking out a loan is not a bad thing, if you do not repay the money you borrow on time you will run into problems.

Many people in the UK are unaware of their credit rating. Even more people do not understand the factors that will perceived positively or negatively on their credit profile. It is a fundamental lack of education about credit checks, reports and ratings that leaves people feeling vulnerable and nervous about applying for credit. This is partly as once they have made an application they do not truly know what level of APR the debt should be paid back at.

When you apply for finance, the company that are lending you the money will run a credit search. This search looks at your historical records that show your tractability and your ability to pay back borrowed money on time at your current and previous addresses. If you have made all of the stated payments in full and on time then your credit rating will usually increase. However, if you have missed repayments in the past your credit rating may have dropped.

Lenders will also look at other circumstances such as your monthly income, ability to make payments (with other commitments you may have), your residential status and martial status. The lender will want to understand the likely level of risk you will pose to them if they lend you money.

If you are unsure of your credit rating it can be confusing to try and work out your likely rating. There are many companies who offer services that will check your profile and will provide you with a rating. All of these services will charge you a monthly fee though. This is not an ideal circumstance for many people who will not want to pay to see their ratings. However, there is a free alternative…

Creditplus.co.uk offer a free credit rating tool that will accurately analyse your likely score by simply asking you 14 questions. Once you have answered the questions, you will be provided a detailed breakdown showing why the answer you gave will either be positively or negatively perceived on your credit profile. Better still, the form doesn’t collect any private information, so you don’t have to leave your name, address or email address to be able to use the tool.

The free tool we have mentioned will give you an accurate look at your credit profile. However, it will not show you if something has been recorded on your file that shouldn’t be there. In order to find this out you can contact Experian and Equifax directly to receive a copy of your dossier for just a few pounds.

If you still feel that you don’t understand your credit profile you can purchase the Creditplus Credit Repair Guide. This will provide you with all the information you need to know about your profile, how to obtain a copy, how to understand and interpret the information and how to correct any information that is incorrect.

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