subject: Importance Of Credit Report In Uk: Index Of The Financial Status [print this page] Credit report of the borrowers in United Kingdom is of great importance. Although the credit report is directly linked with the borrowers, it is not only important for the borrowers. The credit report is equally important for the persons who advance loans to the loan-seekers.
There exist three main agencies or online agencies which are in a position to provide credit reports to the borrowers. The lenders and the borrowers know those agencies as Equifax, TransUnion and Experian. These agencies take notes of different information and prepare credit report of the borrowers. It is not the fact that they work together and reach to the same conclusion. These agencies, actually, work for preparing the credit report individually. Usually their contents (information and observations) are not equal. These agencies take into consideration that the borrowers are not misguided. This is why the borrowers find the credit report in one document.
Why, then, credit report of the borrower is important for the lenders? The financial institutions and the lending agencies are to work under a constraint. This is to mean that they are to work in a very competitive environment. They are to invest their finance in all atmospheres. These financial agencies can secure the financial activities of the borrower and they can find the annual financial transactions of the borrowers. They can thus understand the financial status of the loan-seekers. They do not prefer the people who are tagged with unhealthy credit report. Nevertheless, they do not refuse the applicants. They can decide, after studying the credit report, what amount of loan they should offer and what rates of interest they should charge.
It is really important for the loan-seeker to go through his credit report. The credit report allows the loan-seeker to know his financial transaction of the year or years. He can study the terms and conditions of the loans. Why should he pay interest at higher rates if there is any alternative option? It is again possible for him to take steps so that he can try to improve his history of credit. He can allow a few months to pass. When his credit record will be improved, the lenders will favor him and approve his loan application happily. The borrower may find the terms and conditions for the fresh loans favorable.
