What can damage your credit history?
Your personal information has no bearing on your credit history, but your financial past does.
Every time you miss a payment or pay after the due date it shows on your credit history for up to six years and could stand against you as a result. Lenders will be able to see details of all the accounts you have; know what your debts total and be able to see if you have any CCJs or defaults against you. They use all of this information to help them predict your future borrowing behaviour and determine whether you will be a suitable customer for them. If your credit history shows evidence of missed and late payments, this might deter lenders.
Before you apply for credit be sure to close any accounts you don’t use, such as an old credit card that you keep in a drawer for emergencies, as a lender will add the credit limit to their assessment of the credit that is already available to you. They could then decide that you may not be able to afford to take on any additional borrowing.
If you’ve had a joint financial product with someone in the past, like a joint bank account with an old flatmate or ex-partner, the two of you could be financially linked on your credit history. This means that their credit history could impact on yours, so it may be worth requesting a notice of disassociation from the credit reference agencies. This ensures the other person’s credit history isn’t taken into account by lenders when you apply for credit. However, this can only be done if you no longer share a financial product with that person. Click here to find out how you can check your credit history