How obtaining your credit report can save you money!

April 30th, 2014 - Posted by in Blog, Saving Money

Credit score
Here at Happier.co.uk, we are all about saving you money. Having access to your credit report can save you more than you think whilst also ensuring that lending decisions are made fairly and accurately.

Let’s face it, borrowing is a fact of life for most people nowadays. Whilst some of us get by with the help of Mum and Dad, that option isn’t always available and even when it is, for some of us it can feel a little uncomfortable. So, in order to take advantage of those 0% credit deals that pop up at regular intervals, you need to ensure that the inevitable credit check will not be a problem. There are a couple of places to get credit reports CreditExpert.co.uk and Equifax.

As well as revealing what lenders might be inclined to think of you when you try to borrow money, your credit report can also help you to understand how the credit system works. Once you understand that, it’s possible to not only maintain your credit rating but also to actually improve it. This is really important because if your credit score is below par, you may still be granted credit, but at a much higher interest rate than normal. This extra ‘risk premium’ is added to cover the additional risk encountered when lending to someone who has a lower credit score.

A credit report can also indicate whether there is any fraud occurring due to identity theft; a form of crime that is on the increase in the UK. If you are a victim of identity theft, being aware of it sooner rather than later can save you thousands of pounds, as well as enabling you to better protect your financial affairs in the future. If you’ve been refused credit and can’t understand why, your credit report may also reveal whether the use of incorrect information might have affected the lending decision. If it has, you can have the inaccurate information removed or corrected and ask for a reassessment.

The thing to remember is that nobody has an automatic right to credit; it is entirely down to the lender whether or not they lend money to you. If you’ve never had a loan and have no lending history, which is all of us at some point, lenders may be reluctant to grant you credit. However, your credit report will include explanatory notes and possibly advice on how to start building a credit history. By doing so correctly from the start, you maximise the chances of obtaining any future credit at the best interest rate. If you go to http://news.bbc.co.uk/1/hi/business/2963580.stm you can find a more detailed explanation of how someone’s credit rating is constructed.

Finally, to guarantee that you continue to get the best credit deals, it’s a good idea to check your credit score on a regular basis. There is no doubt that obtaining a personal credit report can reveal a lot about your credit worthiness but, just as importantly, your credit report can also save you money; both now and in the future.



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