Why you should check

Your credit rating is of extreme importance when you are trying to finance a purchase,  applying for a loan  or getting a credit card in your name. 

When you decide to get your current credit report you will have to apply individually to Equifax and Experian. These two are the largest credit reporting agencies in the UK.  All you will need to provide to the credit reporting agencies is information about the  address where you have lived within the last six years.  The cost is £2.

Your credit report is of utmost importance as this is what the lenders study before they approve you for credit.

When you apply for your own credit report it is important  you look at the credit score, check all the financial information quoted does indeed apply to you and check for any mistakes.

Your credit score is a three digit number which appears on your credit report. The range of credit score lies between 500-850. The higher your credit score the better it is, as this will increase your chances of getting credit.

If you know your credit score you are in a better position to anticipate if you will be approved for credit and understand if you are charged a higher rate of interest or refused credit.

It is important to get your credit report as it is through the credit report that a credit score can be determined. In case you want a loan, be it a personal loan or a mortgage loan, you will have to have a good credit score because companies will refer to your credit score before approving or refusing your application.

In order to maintain a good credit score it is important to check your report regularly to ensure all the information is correct.

Before you apply for any type of loan, it is a good idea to check your credit rating.  Before you apply for a mortgage, usually the biggest purchase in your lifetime, it is especially important to check your credit report to check it is correct and if necessary make any corrections.  Once you have a good credit score you will be in a good position if ever you need a loan or credit.

A bad credit rating will deter lenders from dealing with you.