Credit Report – Apply & Get Full Assessment
Credit Report Assessment and Potential Creditor
When you apply for a credit facility, such as a credit card or a loan, the first thing the creditor will do is to check out your credit report. Your credit report holds all of the necessary information about you and your financial history, including your current and previous addresses, what credit accounts you have open and whether you have had any issues with repaying debt in the past.
Reasons of continuous poor credit report
Formal Debt Solutions – Bankruptcy, VA and DRO
IVAs and bankruptcy will have an effect on your credit score for at least five to 6 years, as they remain listed on your report even when completed. If you have taken on a debt solution such as a DMP (Debt Management Plan) then this will be marked against defaulted accounts, and while it might not directly affect your score, it is there for lenders to see.
Having no credit history
Use of minimum/maximum credit limits on your credit/store cards
Electoral Roll and Registration to Vote update
Too Many Credit applications
There is no limit to the number of credit applications you can make, but not all of them will be accepted.
The more you apply for credit, the more this pushes your score down. Every credit application leaves a footprint and when you are wondering later, “what affects my credit rating?” It may just be those several credit cards or store cards you have recently applied for.
For other credit products like insurance, soft searches will take place that will not affect your score. Even some mortgage lenders only do soft searches when considering you.
Joint Account holder’s finances
Types of credit
Length of your credit history
Credit Reference Agencies
There are three credit reference agencies in the UK. Here are contact details for each of the three main credit reference agencies:
Our recommendation: You should check your credit report and take steps to improve your credit rating before trying to borrow from another lender. Three credit referral agencies (Experian, Equifax and Call Credit) who hold your detailed information on your credit report. You may apply to them to get your credit report and check your report regularly to see any updates.
Frequently Asked Questions
There is a wide range of things that contribute to and affect your score, including:
- Utility bills – Your payments to your water and gas and electric providers may be listed on your report.
- Mortgages (Personal and BTL) – This is one of the biggest credit products to feature on your report and your payment history will be available for lenders to view.
- Personal loans (Secured and Unsecured) – If you take on a loan, this will sit on your report and affect your score.
- Credit cards – Your credit card repayment history will be viewable on your report.
- Hire Purchase Agreements – If you take on a finance deal or a PCP loan with a car manufacturer, this will be listed.
- Mobile phone contracts – Phone contracts are classed as credit deals and so the repayments you make will be listed.
- Buy now pay later agreements – Any financial contract you take on will be listed, including repayment schemes.
There are a number of things that will not affect your credit score, including:
- occupation and employment history
- student loans
- where you live
- marital status
- whether you have children
- Informal debt solution agreements between you and your creditors, but a default will.