What’s your Credit Rating?

Do you know what your “credit rating” is?

Do you wonder why you keep getting turned down for credit cards, store cards, personal loans or mortgages?

It could be that your credit rating is sending shivers down the spines of lenders who fear that you may be unable to repay what you borrow.

But what exactly is a credit rating?

When you apply for a bank account, loan, credit card or other borrowing, the institution you are applying to will more than likely consult one or more credit reference agencies such as Experian or Equifax.

These credit reference agencies have a record of all of your borrowings and details of your repayment history and can give a fairly accurate picture of you and the way you manage money.

If your credit history is clean (not too many credit applications, outstanding debts, access to too much potential credit and no, or very few, late repayments) the lender is more likely to accept you application than if you are applying for credit every week, have a history of regular late repayments or have access to thousands of pounds of credit.

How can I check my credit rating?

You don’t have a credit rating or credit score as such, as each credit reference agency will have their own way of “scoring” you. But you can apply to any of the credit reference agencies for a statutory credit report (usually costs £2) and they will send you the information they have on you on file.

You can then look at this information and see if there are instances of late repayments, credit cards you had forgotten you had, or too many applications for credit in a short period of time.

If you consider any of the information to be incorrect you can contact the agency giving them details of what you consider to be incorrect and why it is incorrect.

If you would like to keep a closer eye on your credit record that just a one off check of the details you may be able to subscribe to regular reports and even online access to your credit records.

Experian have a CreditExpert service which allows just this.

For more information check out http://www.cheap-loans-online.com/credit-rating.htm

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