The Importance Of Credit Report In Helping You Manage Your Money

Credit reports exist for everyone

Credit reports exist for everyone. Each time you make an application for a credit card, or open a new bank account, a record is made. When making any big decisions about financial matters, you should first consult your credit report. Never underestimate the importance of credit report when making big purchases.

Each address you have lived at will be listed on your credit file. When you register or request a copy of your file you should give the company as much information as you can about previous addresses in order to speed up the process. It does not matter how long you lived at an address, or how long ago, it will be listed.

Your report will list all of your current borrowings, including loans, credit cards and hire purchase agreements. Any that have been paid off it full will still appear, but with a note to say they have been closed. Try to keep the number of lenders to a minimum, as the longer your credit report is, the more questions are likely to be asked.

Any payments that are missed or late will show up on your file. You will usually find that there is a progressive list of monthly payments, stating whether each was made on time, late, or not at all. After a certain amount of missed monthly payments, depending on the creditor, you will go into what is called 'default'. These remain on your file for 6 years, whether they are cleared or not.

Keeping control of your credit file is essential is combating identity fraud. You should check your report as soon as possible and make sure there are no addresses or credit agencies on there that you do not know about. If you are registered to receive updates about your report, you will be notified every time there is activity. If fraud gets onto your report, it is very hard to get it taken off.

With each credit application made, a new activity will be recorded on your report. Your credit score will get lower the more applications you make, so try to keep these to a minimum. If you have a copy of your report, it can help you to find a suitable lender to fit your needs and circumstances.

Contacting one of the referencing agencies for credit reports should be easy. Most have a website, or links from local government sites, as it is every person's right to see their file. If you are ever refused a financial product, they should send you a letter with the details of the agency they used in order to make the decision.

by: Tim Van Dalsum

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