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WHY CHECK YOUR CREDIT REPORT?
If anything in your report is out of date or gives a misleading picture of your willingness or ability to repay a loan, mortgage or credit card, it can affect your chances of getting the best deals. It can even lead to outright rejection by lenders.
For example, you may have separated from a partner who has since run up debts but, because you have still got a joint account, his or her payment behaviour could be affecting you. You won't see their credit data on your report but you will find a note of any financial association.
Or you may have shopped around for the best offer, without realising your enquiries have been registered as multiple applications. These should show as quotation searches. If they are down as applications, lenders could think you are desperate for money, have over-extended yourself or even that a fraud is being planned.
You could even discover applications and credit accounts in your name that you did not ask for. In that case, your identity may have been used fraudulently.
The easy way to check your credit report is to log onto CreditExpert, the credit monitoring and identity protection service from Experian. If you find anything you disagree with or would like to clarify the circumstances surrounding an entry, CreditExpert will help you to put the record straight.
Click here for your FREE Experian credit report |
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How can your credit report affect you?
The contents of your personal credit report are very important, and help determine whether or not a lender accepts your application for credit, such as a credit card, loan or mortgage.
Your credit report can affect your ability to:
• Get a loan
• Get a credit card
• Obtain a mortgage
• Get the best credit deals
Click here to see what information is held on your credit report
As the information held about you by credit reference agencies like Experian is used to help determine what credit you can obtain, it is important that those details are correct.
To view your personal credit report (which lenders are currently basing their credit decisions on) apply online for a credit report from Experian, the UK's largest credit reference agency, now. You will also receive a 30-day free trial of Experian's CreditExpert Monitoring Service.
Click here for a free 30-day trial and a free
copy of your credit report
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HOW TO IMPROVE YOUR CREDIT REPORT
An easy way to see your report is to join CreditExpert, the online credit monitoring and identity protection service from Experian.
Click here for a free copy of your Experian credit report
Check your credit report
You need to be sure that it is up to date and accurately reflects your circumstances. Keep on checking – your report changes when your circumstances change.
Set the record straight
If anything on your credit report needs updating, tell Experian and they will investigate.
Don’t let debts pile up
Make your repayments on time – this shows potential lenders that you are likely to meet future repayments. Better still, try to pay off any outstanding amounts on credit card accounts completely.
Register to vote
Lenders check the electoral roll as a precaution against fraud, to ensure that you are who you say you are and live at the address you have given. If your name doesn't appear, lenders may not be able to confirm that you live at your address, so you could face ID checks or even rejection.
Protect your identity
If you notice something surprising on your credit report, such as a loan application you did not make, you could be a victim of identity fraud. Inform Experian, who will help to investigate and offer you help and advice.
Don't leave unnecessary footprints
When shopping around for credit, ask companies for a quotation before making a formal application. Lenders may interpret an abnormal number of credit application searches as indicating that you have applied for an unmanageable level of credit. They may even suspect fraud.
Tell the truth
Don’t lie or fudge the truth on an application form. Lenders find out and any inaccuracies on your form will tell against you and cause difficulties in future.
Click here for a free copy of your Experian credit report |
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Getting a Mortgages and your Credit Report
Mortgages Made Simple
For most of us, buying a home means applying for a mortgage – and success or failure could depend on your financial history.
Your Credit Report
Your credit report is your personal financial history. It includes a wide range of information on your credit behaviour, from your credit cards and loans to your repayment record, previous mortgages and details of overdrafts.
The report also confirms whether or not your name is on the electoral roll at your current address and how many times your credit report has been searched.
Credit reference agencies – Experian is the UK’s largest – hold this data on more than 40 million people and 24 million households. So it’s likely that they have information about you.
Click here to view your Experian credit report online for free and see the information mortgage lenders see
Making a decision
When deciding whether or not to give you a mortgage, the mortgage lenders look first at the details on your application form. If you don’t fit their criteria for being offered a loan, they are unlikely to search your credit report. Typical deal-breakers include being too young, insufficient current earnings or too short a self-employment history.
They may then look at any previous relationship that you may have had with them and how you conducted it.
The next step is to search your credit report. A lender may use this information to help create your credit score, by comparing you to past customers with similar characteristics. The result is a numerical assessment of how good a credit risk you appear to be. Normally, the higher your rating, the more likely the company is to lend you the money you want.
Getting a copy of your report before you apply for a mortgage will allow you to check that the information it contains is accurate and up-to-date.
For example, if you had a court judgment against you but have paid the debt, you should make sure the record reflects this. Equally, if you paid off the debt within one month, the judgment can be removed from your report. Or perhaps the fact that you registered to vote has been missed and your name has not been confirmed on the electoral roll. In this case, you should let Experian know. They will investigate and amend their records accordingly.
If you believe that some of the information on your credit report needs further explanation, Experian will help you to add a brief statement or Notice of Correction to your report. This will be seen and may be taken into account by any lender using the information to which it relates.
Click here to view your Experian credit report online for free and see the information mortgage lenders see
If at first you don't succeed
Lenders turn down roughly one-third of all mortgage applicants. If you are one of the unlucky ones, you should be given an explanation. If not, ask for some guidance.
For example, you may not be offering enough deposit or appear to be carrying too much debt from other sources. It may be that your credit report rang alarm bells, perhaps because you had missed some payments on a previous loan.
You can always appeal against the decision and ask the lender to look at your application again. This may give you chance to provide further information. For example, your poor credit record may stem from a one-off event that no longer applies, such as a serious illness or enforced redundancy.
Finally, there’s nothing to prevent you applying for a mortgage from another company. Different lenders may take a different view. But be careful how many applications for credit you make in the short term.
If you allow a significant number of companies to search your credit report, this could damage your credit rating as it could be interpreted to mean that you are desperate for money or possibly that someone is trying to commit fraud. If you know that you have been refused credit because of your credit report, it is always sensible to check it before making any further applications.
Click here to view your Experian credit report online for free and see the information mortgage lenders see
No nasty surprises
To help avoid any nasty surprises, you can keep tabs on your credit report by signing up for a free, 30-day trial of CreditExpert, an online credit monitoring service from Experian. It means that you can check your credit report at any time – invaluable when you are applying for a mortgage, when you often need to move fast. You will also be warned by a weekly email or text message when a significant change, such as a new search, is registered.
Joining CreditExpert also allows you to order a copy of your National Credit Score at the special offer price of £4.99. It only uses the information in your credit report but it will give you a good idea of how lenders will rate you.
And if you need to improve your credit report, the CreditExpert site contains plenty of advice, hints and tips that will help you to turn your dream home into reality.
Click here to view your Experian credit report online for free and see the information mortgage lenders see |
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What is identity fraud?
What would you do if your credit cards were stolen? If goods that you did
not purchase were charged to your credit accounts? If unauthorised credit
accounts were opened in your name?
These actions are typical examples of identity fraud, where criminals steal
victims' identities in order to take over their credit accounts or to open
new accounts in their names.
Most of us have never experienced identity fraud and many of us may be unconcerned
and believe we're not affected by it. But we are.
Identity fraud affects everyone
Identity fraud is on the increase and is the UK’s fastest growing
crime. According to the Cabinet Office, identity fraud costs the UK at least
£1.3bn every year and is one of the more difficult frauds to combat.
The trouble with a successful fraud is that both consumers and lenders are
fooled. Although lenders are employing ever-more sophisticated methods to
spot fraudsters, people who are targeted by fraudsters often take up to
14 months to realise they are victims of identity fraud.
When criminals buy goods and services on credit using false information,
we all pay through higher prices and more expensive credit terms, even if
our own accounts are untouched. And when someone is victimised by a particularly
successful scam, criminals are more likely to continue cheating others using
similar fraudulent operations.
Some typical scams
The rise in Internet usage has meant an increase in the number of online
scams. Here are some examples:
The Nigerian scams
The fraudsters send emails to people telling them they can release a fortune
that is tied up in an African bank by allowing them to transfer the money
into the person’s account. In return, the person will be given a share
of the profits.
Another variation on this is an email supposedly from the widow of a high-ranking
Nigerian official pleading for the recipient to help her access her late
husband’s money. Again, the recipient is asked for their bank details.
The catch with these scams is, of course, that rather than money going into
the person’s bank account, the fraudsters clean out them out using
the details sent to them.
Phishing
This form of fraud has made headlines recently, with Barclays, Lloyds TSB,
Natwest and even the Bank of England affected.
Barclays customers were sent emails saying that the bank was making technical
changes. There was a link to go to a page where customers were prompted
to enter their account details
Lloyds TSB customers received emails saying their accounts would be cancelled
due to a new security measure unless they went to a site and entered their
details
Natwest, Halifax and Nationwide customers were sent emails saying they needed
to verify their accounts by going to a site and entering their details.
An email supposedly sent from the Bank of England urged people to download
anti-virus software
The fraudsters set up "spoof" email addresses that look like they
could credibly belong to the institution. Once they have received account
details, they siphon money out via "mules" – people with
UK accounts – to their own accounts abroad. These scams are believed
to be run from Eastern Europe.
Lottery and prize draw wins
Emails are sent out to people telling them they’ve won a lottery or
prize draw and they need to send a payment for "administrative"
or some other purpose in order to claim their winnings. Of course, there
is no prize...
CreditExpert is an online service offered by Experian that monitors your
credit report and alerts you if anything changes.
Click here for a free 30-day trial and a free
copy of your credit report |
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