Credit report is an essential part of life when you have to take out money from any lender. Ironically the system works in a way where a person who wants to improve his credit score has to take out a loan which depends on a credit score itself.
However there are newer borrowing methods which can allow a person to take out small loans and pay them back to increase and improve their credit score. These include guarantor loans and payday loans. Both these loans are easily acquired and a prior credit check is usually not required to take them, however there are some problems associated with such loans.
In case of payday loans, high interest rates are attached with them and you might want to consider taking them out only when your financial situation is not already difficult. In the case of a guarantor loans, interest rates are a bit lower as compared to payday loans but finding a guarantor might be a problem and it can affect your relationship with the guarantor who in most cases are close friends or family.
How to check your credit report?
Companies That Compile Your Reports:
There are specific companies trusted by banks and the government to strictly monitor people’s credit scores and provide them in case a lender wants to check the credit history before handing out a huge amount.
Popular UK credit check companies include:
- Equifax
- Experian
- Callcredit
The companies not only provide credit history to lenders, but people who want to have a better look at how they have been fairing in the credit game can access their credit histories on the companies’ website.
What Does A Credit Report Contain?
- Name, Age and Date of birth
- Current and previous residences
- All your credit accounts, list of all the loans that you have taken out and the history of their payments. A credit report is like a financial log of all your credit related activities.
- Details of people that are financially linked to you which in most cases is the spouse.
- Public records such as House repossessions, court judgments and bankruptcies.
Who Can Look At Your Credit Report
Lenders usually ask permission from the borrower to see their credit report and can acquire them from any of the three mentioned companies. Landlords are also able to see the reports before renting their house to you, but there is a difference between the kind of report they receive and the kind that a lender receives. Landlords in most cases would only be able to see the electoral register information, court judgments and fraud cases if any.
Acquiring A Credit Report
The three mentioned companies are statutorily obligated to provide anyone with their credit report for £2. However Equifax and Call credit operate under the names of ClearScore and Noddle respectively, and can provide you an access to free credit check for life. You might have to pay the £2 price for a written report though.