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Practical tips to help you improve your credit rating and avoid expensive high interest loans

Why a Free Credit Report Will Not Tell You Everything You Need to Know

An image of a cartoon man holding a credit report

Today there are lots of opportunities to get free credit reports 👍

If you think you have a bad credit rating and but are looking to get a loan, these free reports will not tell you everything that you need to know.

There are free and paid-for reports.

Although the majority of people instinctively opt for the free option, there are 3 reasons why this may not provide you with all of the information that you need:

 


1Free credit reports only provide access to your credit score for 30 days An image of a red credit report button

You will only have free access to your credit file details for 30 days from the moment that you sign up!

  • Once the 30 days has expired you will have to choose the paid option should you wish to view your details again.
  • James Price highlights his problems with this below:

“I was very disappointed to find out that you can view your credit report in the 30-day free period only”

“I originally signed up for a free credit report with Experian over 10 years ago in order to view my current credit rating. After finding everything in order, I never gave it another thought and did not log back in.” 

“However several years later, after having a personal loan application declined, I tried to log back in to my account and only to find that despite only using the service once, I no longer had access to a free credit report and would have to pay if I and wanted to see my credit score again.” 

“I was very disappointed to find out that regardless of how many times you actually view your credit report in the 30 day period, you can only sign up for the free option once and would strongly recommend that anyone signing up for the free options bears this in mind.”

 


You can try checkmyfile free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.

 


2. Free credit reports do not offer a universal credit ratingAn image of scrabble tiles spelling credit rating

Many people obtain a free credit report in the belief that the information they find will guarantee the success or failure of their planned application.

The truth is that each lender has different criteria for their potential customers and as such, regardless of the information that you receive, the ultimate decision rests firmly on the shoulders of each lender.

For more information on why free credit reports do not offer a universal credit rating, please take a moment to view the following Debt Advice Foundation article: http://www.debtadvicefoundation.org/debt-tools/credit-score-checker

 


You can try checkmyfile free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.

 


3. A free report may not show critical informationAn image of a risk assessment word cloud

The free reports often do not show critical information such as joint accounts that will impact your credit report.

For example, if your partner has a history of bad debt, this could reflect on you!

The following Economic Voice article explores ‘The True Value of a Free Credit Report’. The true value of a free credit score | The Economic Voice

 


You can try checkmyfile free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.


More tips:

No hiding place from your credit rating!

search_credit-score-estimator

In the old days, a poor credit rating would simply stop you from getting a loan at a low rate.

But times have changed and it is now a factor across many aspects of your life

  • enough to see a potential landlord reject your rental application
  • have your phone provider reject your mobile phone contract application
  • may even hinder your chances of getting a job!

Click here to see some of the wide-ranging effects of a bad credit score.

 


What Can Affect Your Credit Rating?An image of a credit score chart

With the importance of credit history, it’s important to understand how the credit scoring system works and what can impact it.

  • Are You On The Electoral Register? 

This is important because being registered to vote gives lenders proof of address.

  • How Many Accounts Do You Have?

Lots of different streams of debt will be viewed as a big negative. Demonstrate your ability to repay the debt by paying off and closing the relevant account as soon as possible.

  • Limit The Number of Applications You Make

Submitting too many applications in a short period of time will negatively impact your credit score and will be a major concern in the eyes of potential lenders.

  • Make All Scheduled Repayments

Late or missed payments stay on your record for at least 3 years and are a definite red flag for lenders.

  • How Often Do You Move House?

Lenders are widely known to place much less trust in those who move house frequently

  • Guilt By Association

If you hold (or held) a joint account with someone who has a bad credit record, this can also affect your ability to get credit. Close it as soon as possible.

  • Do You Maintain a Regular Income?

Permanent jobs and regular income reflect positively on your credit report.

Click here to see some of the other common factors that can impact your credit score.


How To Check Your Credit Report?

Almost every adult in the UK has a credit score produced by a credit reference agency.

CE-your-score

These agencies rate your credit-worthiness by keeping track of your bills, debts, and repayments. You can gain access to your credit report by contacting:

  • Contacting any of the 3 major UK credit reference agencies (Experian, Equifax or CallCredit) or
  • Getting a multi-agency report (all the information stored by the 3 agencies in one comprehensive report).

You can try checkmyfile free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.

 


Have a poor credit score and need a loan?

Poor credit loans can be expensive 💷

We specialise in providing the very best value loans, which are typically guarantor loans.

Get multiple quotes in 3 minutes with zero impact on your credit score 👍


 

Jon Edward
Jon Edward
Passionate about helping people find options, when on first glance there do not appear to be any.

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