10 reasons to check your credit
rating
1. When you check your credit rating you get a snapshot of all your outstanding credit - you can see all
your credit accounts - your mobile phone, shopping catalogues and gas & electricity bills, as well as credit cards, loans
and mortgages. You can see how much you owe in one convenient place, giving you the big picture on your finances - and it's
much easier than having to check all your different bills and statements.
2. Checking your credit rating can help you to apply for the right
credit deals for you. If you know your credit rating and have seen the information lenders use to decide whether to lend to
you or not, you can make sure you apply for the credit card, loan or mortgage that's right for your credit profile.
3.
If you don't have a perfect credit history, being familiar with the contents of your credit report can help you to improve
your credit rating, by alerting you to problem areas and highlighting any difficulties you are having managing your credit.
4.
Your credit report has a handy list of all your lenders and their contact details, which is convenient if you need to get
in touch, for example if you're moving house or your circumstances change in any other way.
5. There's also a record of all
the addresses you've lived at in the last six years on your credit report, which can be really handy if you're filling in
a job application form or if you want to open a new credit account.
6. Your credit report lists every application for credit you've
made in the last year, so you can make sure you don't reapply to a lender who you have approached already.
7.
You can make sure that lenders haven't misinterpreted a request for information as a full application for credit. Requests
for information shouldn't show up on your account, and if these mistakenly show up as applications, it can damage your credit
rating, as lenders don't like to see a large number of applications in a short period of time.
8. If you spot any mistakes when
you check your credit rating, you can correct them by contacting the relevant lender. You can also add something called a
note of explanation if your circumstances caused credit problems, for example if you missed loan repayments because you were
ill - but remember that you will need to be prepared to provide proof.
9. You can check your credit rating as many times as you want without
it having a damaging effect on your credit record. The checks are only visible to you and the credit reference agency - lenders
can't see that you've checked your credit rating and it has no impact on your credit score.
10. Checking your credit rating
regularly is recommended to help protect yourself against identity fraud. If you check your credit report regularly, you will
be able to pick up on unfamiliar or suspicious applications or accounts and alert the relevant lenders and the authorities
to the fraud.
