Lenders can be picky about who they offer loans to – and your personal credit rating will have an impact on those decisions.
The role of a credit score is to try predict your future behaviour, which means that people who have a poor score may suffer, as can those who have no credit history at all.
Each time you apply for credit, this might be recorded on the files held bu the credit reference agencies. As every lender has its own ‘perfect customer’ profile, a rejection from one isn’t necessarily a rejection from all. By talking to us we’ll have a better feel for items which may score you down, and where you might get a more favourable response for credit. As part of the process, we should also be able to limit the number of applications made – since too many could result in a lower score.
What makes up your credit score?
A number of aspects will be considered, such as not appearing on the electoral roll, defaulted pimentos, missed credit card payments, any County Court Judgements (CCJs) or bankruptcy, employment position, salary, marital status and age.
What you can do..
Aside from making sure you’ve not been a victim of identity fraud, it’s always a good idea to keep tabs on your credit rating each year to ensure your files are correct and up-to-date.
You can do this by contacting the following agencies and asking for a copy of your credit file (they may charge a small fee). If you find a mistake, you can ask for it to be corrected. Additionally, try to settle any debts, as that may help to improve your rating. Since companies will use different agencies, it may make sense to check them all:
Experian – Tel: 0800 013 88 88 – www.experian.co.uk
Equifax – Tel: 0800 014 2955 – www.equifax.co.uk
Callcredit – Tel: 0330 024 7574 – www.callcredit.co.uk
This one brings together information from the above agencies:
Checkmyfile – Tel: 0800 086 9360 – www.checkmyfile.com
Also, if relevant, write to the lender if they have flagged something that you feel is inaccurate and you can ask for a not to be added to your file explaining special circumstances as to why you may have failed to settle a particular debt.
Ten tips
- Check your files annually or before any major application.
- Ensure that you’re on the electoral roll.
- Don’t make too many applications within a short time period.
- Sort out any address errors, and have one consistent address.
- Never miss or be late on any credit repayments.
- Shut down unused cards – as they could be a fraud risk.
- Don’t withdraw cash on credit cards in the UK.
- Be consistent with your information across applications.
- Don’t let your partner or housemate’s score wreck yours!
- If you’re separated, then try to financially delink too,
Please get in touch if you have any questions or require assistance.
Your property may be repossessed if you do not keep up repayments on your mortgage.
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Other useful links
How much is your home worth?
Aside from getting it valued, you can check out the sale prices of comparable properties in your area: www.nethouseprices.com
Tracing lost or mislaid…
Bank, Building Society, or National Savings accounts – www.mylostaccount.org.uk
Bank account: 020 3934 0329 (UK Finance)
Building Society account: 020 7520 5900 (Building Societies Association)
National Savings account: 08085 007 007 (National Savings and Investments)
Insurance policies, pensions, unit trust holdings and share dividends – www.uar.co.uk
0333 000 0182 (The Unclaimed Assets Register)
Pensions – www.gov.uk/find-lost-pension
0800 731 0193