Check Your Credit Report

Check Your Credit Report

Money Tip #10 – Check Your Credit Report

www.moneytothemasses.com

Following hot on the heels of Friday's ‘ID theft' post, one task everyone should perform once a year is to check their personal credit report. Not only can this help minimise the impact of ID theft but there also are a number of other reasons to check ……

What is A Credit Report?

A credit report is essentially a detailed record, compiled by a Credit reference agency such as Experian, of your Credit History. Lenders, such as your bank, use this information to determine whether to lend to you and on what terms depending on your risk as a borrower.

What does it show?

It includes:

• Your name and date of birth
• The electoral register (i.e. that you are on it for the relevant address)
• Your credit payment history
• Details of your Credit Cards and loans, including balances, credit limits, account statuses and the dates they were opened
• County Court judgements
• Bankruptcy and administration orders
• House repossessions
• Details of when you've applied for credit

The information on your credit report is then used by lenders to generate a Credit Score, but this score is not part of the report itself.

Blimey, what doesn't it show?

• Criminal Records
• Marital Status
• Race
• Religion
• Salary
• Inside leg measurement

Basically, it only shows details relevant to your credit history and the taking out of credit.

Why should I check it?

1. To ensure all the details on the report are correct
2. To check your Credit Rating – it is better to check there is no issue ahead of applying for credit, otherwise that dream house could remain just that. If you need to take action due to an adverse score you will have a bit of time to improve things.
3. To ensure credit has not been taken out in your name without you realising. A lot of people have had credit cards falsely taken out in their name and they've been none the wiser until they themselves were refused credit or the bailiffs came knocking.

I heard that if you check your credit report this damages Your Credit Score?

This is an urban myth. The fact you checked will be noted on future reports but it won't affecting any Credit Scoring.

How long is information kept on my record?

• 2 years for a credit search by a potential lender
• 6 years for late payments and defaulted accounts
• 6 years for closed accounts
• 6 years for bankruptcies

What if there is something strange on my report or it contains incorrect information?

If the details are simply incorrect then contact the lender directly who will update their records and the credit reference agencies, eventually (usually after a month).

If you suspect fraudulent activity has taken place then contact the rating agency in the first instance who can talk you through what you need to do. This will likely involve contacting CIFAS, the UK's Fraud Prevention Service who can put an entry on your report for protection, and or the police.

How do I get My Credit report?

The good news is that it can be done online and is free. I've personally used Experian before and have had no complaints. But be careful, because they offer a 30 day free trial which requires you to register a Credit Card. After the 30 days have expired they will start charging you a monthly fee for access. So just make sure you cancel your membership with the 30 day free period.

About the Author

Who writes the Money to the Masses blog?

Just me, a financially astute guy in his early 30s who has been building a career in The City all his working life. My experience is backed up by qualifications including a Degree in Mathematics, Diploma in Financial Advice, Certificate in Mortgage Advice and the Investment Management Certificate (a pre-requisite for anyone looking to invest client money) as well as a number of Actuarial exams. Currently I am involved in providing wealthy high net worth clients with financial advice. But perhaps my biggest passion (and arguably my greatest skill) is removing the smoke and mirrors of the world of finance and presenting it to the layman.

Does anybody know if a car dealership can check your credit without showing anything on your credit report?

A car salesman promised me that he can Check My Credit without affecting My Credit Score as an inquiry, I just want to see if anybody has hear of this before?!

He's full of it. Car dealers are the worst about runnin gyour creit. They will run it through multiple lenders. I learned that the hard wya. The first time I tries to buy a car I think it was about 8 different lenders they gave my info to and everyone shows up as an inquiry on your credit.

Check your Credit Report For Free - Matt Sapaula - Financial Planner

 

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Check Your Credit Report

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