What Is The Importance Of Credit Report?

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.

For all credit cards, loans or other financial products you are currently under contract with, there will be an open record on your file. Those that have been fully paid will still appear for six years. The more lenders you have had in the past and currently, the lower your overall score will be so do try to keep this as low as you can.

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.

Identity fraud is more common now than ever, and to avoid it happening to you it is advised you manage your credit report. Once fraud of any kind is listed on your account it can be almost impossible to have it removed. Registering to receive updates can be helpful as any activity on your account will be flagged to you.

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.

To get a copy of your credit report, you should contact one of the credit reference agencies. If you are declined credit, they should offer you the contact details of the agency they used to credit check you. You can then either visit their website or contact then by post or telephone.

by: Tim Van Dalsum

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