Your credit report is an invaluable tool and it is in your interest to check it regularly.
Your credit report is a key source of information for both yourself and for lenders.
It helps you control your finances and helps lenders to decide whether to lend to you or not.
Before we go into the detail, remember you can get a free credit report online now, quickly and easily.
What’s in your credit report?
Within the report, your credit account information shows details of your credit agreements with lenders. It covers everything that you are using today but for which you will repay the lender at a later date.
For this reason, as well as credit cards, loans and mortgages, your credit report will also include details on such as utility accounts, mobile phone accounts and shopping catalogues as well.
By having this information in one place it means you can easily see all your outstanding credit and not have the hassle of finding a variety of statements and bills scattered around the house.
It also gives you ready access to the contact details for those supplying you with credit, making contact with them easy.
Get a free credit report now and you’ll see exactly what information is held.
Why check your credit report?
Importantly as your credit report enables you to see what lenders will see about you it means you can better plan credit applications and if need be take steps to improve your credit history before you apply for a loan.
Your credit report also gives details of the addresses you’ve lived at for the last 6 years. It’s not always easy to remember all addresses when you open a new credit account or perhaps apply for a job, so having them all listed in one place can be a great help.
Critically you can check your credit report yourself as often as you like and it won’t have any effect on your credit score.
In contrast, if you make multiple applications for credit in a short space of time, all of which require a full credit check, it can make other lenders worry that you’re too keen for money.
If by checking your report you spot any errors or misunderstandings then you can contact the appropriate lender to get them corrected.
Finally, as recommended by the Home Office, regular checks on your credit report can help porotect yourself against identity theft. If you spot unknown accounts or credit checks then you can raise this promptly with the lenders and the authorities.
All in all, a regular check of your credit report is easy to do and has, as can be seen, a clear number of benefits.