How to Improve Your Credit Report

With the economy on go-slow and lenders in a cautious mood, this is the perfect moment to get to know your credit report. It lists your credit accounts, your repayment record and much more – and it can make all the difference between getting the credit card, loan or mortgage you want and a string of puzzling rejections.

Find out what a credit report contains, how it’s used and what you can do to improve it – and your chances of getting the credit you need.

Improve Your Credit Rating: Who has a Credit Report?

If you’re over 18 and have ever taken out a credit card or loan, apart from a student loan, then you have a credit report, which is held securely by a credit reference agency – Experian is the UK’s largest.

Lenders usually check your report when they decide whether to make you an offer and what terms, such as interest rates, to set. It helps them to make informed and responsible decisions.

Improve Your Credit Rating: What does a Credit Report Contain?

As well as listing your credit accounts and showing whether you make repayments on time and in full, your credit report contains a range of information that helps lenders to assess whether you are a reliable borrower and can afford to take out more credit. This data includes details of any court judgments against you for non-payment of debts, plus bankruptcies or individual voluntary arrangements you’ve taken out.

The electoral roll shows if you have registered as a voter at your current address. Lenders check the roll as a precaution against fraud, to make sure that you live where you say you do.

Another section lists the people with whom you share a joint account, such as a credit card or mortgage. These people are known as your financial associates. Their credit report details don’t appear in your report but lenders may look them up separately because their circumstances could affect your ability to repay what you owe.

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