It is more important than ever to know your credit score
It’s more important than ever to know your credit score, but why is this the case and how do you find out what information is held about you on your credit file?
Lenders are making life difficult for those who wish to obtain credit and even those who think they have a perfect history are finding themselves being turned away for products they would have been a shoe-in for a couple of years ago.
It’s therefore well worth obtaining a copy of your credit file before you apply for a mortgage, loan or credit card and you can apply for yours through moneysupermarket.com’s new credit checking channel.
But what should you look for when you’ve got your credit file? What exactly is a good credit history? And what do providers look out for when deciding whether or not you are worthy of their credit?
Read on to find out.
What do lenders look for?
Mortgage, loan and credit card providers have a ’score’ card which they use to evaluate credit applications. They give or take away points from you depending on the information that is on your credit file. Each lender’s score card is different although the main factors they look out for, and will reward you points on, is your current credit conduct, whether or not you appear on the Electoral Roll and how long you have been in continuous employment.
What information is held about you?
When you receive your credit file, the following information will appear on it:
Electoral Roll information – the date your name was entered onto the electoral register at your current address shows here, it will also show the dates that you were on the Electoral Roll at previous addresses. Lenders will use this information as proof that you live where you say you live.
Financial associates and aliases – you will find here any names that you have previously been known as and also anyone that you are tied to financially. For example, if you hold a joint bank account with a partner, then this information will appear as well as basic details of the other person’s whose name the account is in.
Public record information – here you will find details of any County Court Judgements (CCJs), Involuntary Arrangements (IVAs) and bankruptcies. It will show the date that the information was registered and, if applicable, when the arrangement or CCJ was satisfied, in the case of a bankruptcy, it will show when this was discharged.