I want to know my Credit ScoreI' d like to know my credit rating.
How do you know if your credit rating is good?
It is a straight and narrow issue, as the three major credit reference bureaus (CRAs) in the UK give different ratings to each other. Higher credit ratings give you better tariffs and offers for credit card, credit, loan and mortgage applications. On the other hand, if your creditworthiness is poor, you will probably be charged a high interest rate or you will not even be eligible for credit.
Exactly what is a credit assessment? In simple terms, a credit assessment is how a creditor judges whether you are a dependable individual to whom you are lending funds (or giving credit). Your creditor wants to know if you can handle your liabilities or if you are likely to get into difficulties or even be late.
To decide whether to accept your request, the creditor will look at your credit reports, which contain all the particulars of your current state. One or more of the UK's three major credit bureaus provide this information for a surcharge. It will tell the creditor whether you have a mortgage, how much you owe yourself on tickets, and if you have missed out on any payment - be it tickets, loan or mortgages - as well as other Details about your finance story.
Their credit reports are extremely important because they help creditors determine whether they should accept or reject your credit request and what conditions they can give you - advantageous or not. Every creditor has his own unique credit system and will consider your request alongside any earlier transactions he has had with you to create his own credit score.
That might seem a little scary, but despite what is commonly believed, there is no credit blacklist and you do not have a credit rating. Anyone with a high credit score, for example, could be eligible for a 0% interest rate credit cards business. So what happens when you ask for a credit? Anytime you request a credit or debit, it will leave an entry in your records.
Too many of these can affect your overall score in a hurry. Unless you are cautious when you are shopping around for credit card or loan, you could try to apply to several creditors to see what you would be up for.
When you did this, you could end up with a series of tough credit scores on your reports that will unavoidably decrease your chances of getting the best deals at the best rate. However, there is a way to see which credit card or loan you would be suitable for without a hint of a tough review of your credit reports.
MoneySavingExpert's Credit Club offers you a free credit verification tool. Experian works in conjunction with Experian, but uses a "soft check" so that monitoring your creditworthiness does not influence your credit reports. Completely free, this tool allows you to research your ratings, identify the most important issues affecting your credit profiles and your affordable values, and give you advice on how to make them better.
The Credit Club will update your credit score every month so you can keep an eye on your score and see how your credit opportunities improve over the years. It is also possible to review your credit record once a year by asking for a copy from all three credit bureaus. Under the Consumer Credit Act you have the right to receive your full legal credit statement at any given moment, at a price of 2 per statement, so expenditure should not exceed 6 pounds.
As soon as you have verified your creditworthiness and ensured that all your information is accurate, it is your turn to improve your creditworthiness.