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Personal Credit Files |
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How are personal credit files produced? |
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There are three main categories of information accessed to produce a Personal Credit File, they are:- Credit Account Information lenders register information with credit reference agencies about borrowers which they can then share. This information allows them to check if an applicant has any outstanding loans with another lender and whether they have kept payments up to date, it will also show if any previous loans were settled and the payments made on time. Public Record Information to check, UK electoral roll is use to check names and addresses, any county court judgements(CCJ's) or Scottish decrees showing default on debts, records of any bankruptcies, repossession or administration orders etc. Credit Search Information looks at the amount of credit checks carried out by lenders, a large number may indicate over commitment or possible fraud. The above information is held on most UK adults by companies called Credit Reference agencies, they are used by lenders to assess the risk in granting credit/loans to individuals. What is Credit Scoring? As well as using the above, whether you are applying for a mortgage, a credit card, a loan or any form of credit related product, it is likely that your application will be given a credit score. They use this to help them decided whether or not to accept your application or set a maximum credit limit. The questions on the application forms are design to help the lenders assess your creditworthiness, each answer is awarded points and the total amount received will determine either whether your application is successful or whether a reduced amount or limit is offered. How do I obtain a copy of my credit file? You can obtain a copy instantly on-line or by post. You will need to supply your full name, date of birth, current address as well as any address that you have live at in the last 6 years. If you run a business you will need to give its name and address as well, as separate information could be held on you under your business. You should also inform the agency of any name change in the last 6 years. You can use the links here get a free credit score and rating check or purchase a comprehensive personal credit report online, this is what you need if you want to know why you have been declined credit or wish to improve you credit standing.These are the three main credit reference agencies in the UK that are use to access your data are Experian, Equifax, Callcredit and you can a report from all three of them online now click here
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