Check your Credit FileReview your credit file
Although it' simple to take refusal in person, sometimes you just don't match the criterias of a particular lender, however flawless your credit file. "Creditors must indicate all minimal conditions and exceptions prior to the claim procedure, such as minimal earnings, retirement date, residence or membership of an established client. "Comprehension of the processes and knowledge of the behind-the-scenes controls that creditors perform will help you increase your chance of being acceptable for credit product in the long run.
These tools carry out a smooth quest in your credit file that is not viewable by creditors, so you can get a good picture of the items you are likely to be qualified for without any risk of harm to your credit histories. If you complete a credit request, whether on-line or on hard copy, creditors go through four major phases of verifying your credit and indentification.
In order to avoid cheating, it is important for creditors to check that you are who you claim to be and that you fulfil the required qualifications for the claim, such as residence in the UK or a guaranteed salary or period of work. Often, a creditor checks your electronic identification against the information you provide on your claim forms compared to credit records that contain information from the voter roll.
In the event that a creditor cannot check your ID in this way, perhaps because you have recently relocated, he will ask for additional documentation, such as a sworn copy of your ID or current utility invoices. Lenders create an information set that enables them to perform the next two tests. Your creditor will review the information you provide in your resume with everything he already knows about you, such as any prior business you have done with him or his affiliated companies.
The creditor accesses the information in a credit file that is maintained about you, where the credit file is a recording of your personal behavior, created by one of the three credit reporting institutions - Eqifax, Experian and Callcredit - and used by various third parties. You must give your express permission for the creditor to view such a file before taking this action.
When the result is a recommendation, the creditor will ask you for further information, e.g. to check your ID or your earnings. In the event that your request is rejected, the creditors are obliged to give you a justification. In most cases, this is because you did not fulfil your credit check requirements.
It is important not to react to a downturn by immediately making many more requests - each one will appear in the credit file and too many in a hurry can negatively impact your creditworthiness. Instead, it may be more prolific to check a credit reference yourself and look for any problem that might cause refusals.
It is important for clients to realize that creditors do not adjust their credit profiles around the numerical credit scores enclosed with a credit file - this is more an indicator for clients of how strongly their profiles are. It is possible that a client with a potentially very high number of points will be rejected if they do not match the creditor searched for.
It is also important to realize that not all credit scores are the same - some creditors will look for lost payment in six month, some will look for two years, some will not even worry about past issues in this area. Further causes for a credit decrease can be imprecise information - in which case clients should turn to the offices and request an update.
Each client should have a good notion of what credit history is stored on them. Comprehending your credit file can be the distinction between a good and a poor interest rate for a loan, or even an acceptance or rejection. Always consider your credit history before submitting an offer, as even unsuccessful offers may appear in your file and aggravate credit problems.
You can also proactively review all information to make corrections and keep abreast of changes. Changes can also be good frauds indications, which is why some audit firms provide frauds warnings with their audit work.