Have you ever checked your credit report? Or is it something you’ve never got round to doing?
It can be a really good idea to check your credit report annually to make sure that there are no mistakes. If there are any errors, you could flag them up with the credit reference agency and hopefully get them corrected before they impact on your ability to borrow.
Lenders will look at your credit report before approving you for mortgages, credit cards, loans and other forms of credit so it is important that everything is correct.
New research by uSwitch has revealed that 1 in 3 people who checked their credit report in the last two years have found mistakes*.
Top 3 mistakes:
1. Incorrect credit products listed
2. Wrong address
3. Wrong name of company/bank that provided the credit
In many ways, if you don’t check your credit report you leave it to chance when you apply for a mortgage, loan or other form of credit. Something as simple as the wrong address on a bank account could have a big impact on whether you get accepted.
Getting mistakes corrected could be an easy way of improving your credit score. Not only could it potentially reduce your chances of being refused credit but it could also help stop you missing out on the best interest rates.
There are other things you can do to boost your credit score too. Every time you apply for credit it shows on your credit report so it is wise to stagger your applications to prevent lenders from thinking that you are desperate for money. For example, if you will be applying for a mortgage in four months’ time, it’s a good idea to hold off applying for several credit cards or loans until you get your mortgage.
If you had joint finances in the past with an ex-partner, you may be financially linked so you could ask for a notice of disassociation by writing to the credit reference agencies. That way their credit report won’t impact on yours.