Benefits of getting a free credit score

A healthy credit score could be one of your most important financial assets as you journey through life. From car loans to mortgages and emergency credit cards to store cards, many of us will take out credit in some form during our lifetimes.

Your credit report paints an interesting picture to lenders and shows them how you manage your finances, whether you are a responsible borrower and could also help you to get a lower interest rate on any amount you borrow.

But if you have never checked your credit score or you have not checked it for years, you could be unaware of critical information that could be affecting your credit status without your knowledge.

Why is credit status so important?

The state of your credit tells a lender just how much of a risk you are and whether they should offer you their most competitive credit products, products that offer them a better level of protection (higher interest rates etc.) or to refuse your application altogether. Even mobile phone suppliers check your credit these days.

It’s really important that the details on your credit report are accurate and a true reflection of how you manage your finances. Checking over your credit report will help you to ensure everything is in order and also highlight any blemishes to your credit score that could be improved. One late payment should not pose a problem, but more missed or late payments could be the red flag a lender needs to refuse you credit.

Where do credit reports come from?

There are two main credit agencies in the UK; Experian CreditExpert and Equifax. These agencies collect financial information about you and make that data available to lenders. The data held on file varies and will include basic information such as your name and address and also any information about credit agreements past and present.

Your credit report will contain details of all of the credit agreements you have and have had in the past. Other details include the maximum amount of credit you are allowed to take out and your credit history. If you pay your bills on time, have some but not extensive borrowing and don’t make lots of applications, this is usually all a lender needs to accept your application.

Review your credit report now for instant peace of mind

Obtaining your free credit report is easy and you can use services such as Experian CreditExpert to find out more about your credit status and how likely it is that you will be accepted for credit in the future. If your rating is good, you can sit back and relax. If there is room for improvement, you can take steps to rectify the black marks on your credit report and restore your credit rating to a satisfactory position.