All About UK Loans
Credit Report Myths & Legends....
...this guide has been put together to uncover the truth behind some of the myths surrounding credit reports and how credit reference agencies operate.
What is a Credit Reference Agency?
Credit reference Agencies hold credit information on most adults in the UK. When you apply for credit, you will normally give the lender permission to carry out a credit check. This is done by accessing your credit file from a credit reference agency such as Experian or Equifax. A credit reference agency does not decide if you should get credit or not, but the information they provide will assist the lender to decide. The information held includes details of the electoral roll, court judgements, bankruptcies and past and present credit commitments.
Does a credit report show refused credit?
No. Credit reference agencies are not told if you are succesful or not in your credit application. Therefore, the fact that you have been refused credit cannot be recorded on your credit file. The fact that a credit check has been done IS recorded on your credit file along with who carried out the search, the date and the type of credit applied for, but not the outcome.
Do credit reference agencies have a blacklist of people or specific properties?
No, there is no such thing as a credit blacklist. The credit file holds information about how you have conducted yourself with past and present credit repayments, but the agency does not tell a lender whether to accept or refuse a a credit application.
Can previous occupants of my home affect my credit rating?
No. Lenders can only carry out a credit search on people, not addresses.
If I have adverse credit, will it affect anyone else in my household?
No. Not unless you have joint finances (a loan, a bank account or a mortgage) with them. If you are not connected financially with anyone else, then their credit histories will not be linked to yours.
Can adverse information like CCJ's be removed from my credit file for a fee?
No it can't. Be very wary of any company offering to repair your credit rating or remove debts or CCJ's from your credit report for a fee. Only incorrect information can be removed from your credit report and the credit reference agency will do this free of charge once they acknowledge the error. If adverse information about you is accurate, but you feel that it needs an explanation, the credit reference agency will help you to add a statement to your report, again for free.
Does applying for credit lots of times affect my creditworthiness?
Each time you make an application for credit, a search (footprint) is recorded on your credit report where it stays for at least 12 months. This allows lenders to see how many times you have applied for credit in the past year. If they see lots of searches in too short a time frame, it may count against you. In order to prevent this, research the lender that you are applying with to make sure that you have found the best deal before you allow them to do a credit search. Alternatively, make use of a broker who will probably only do one or at most two searches, but will be able to find the best deal available to suit your circumstances.
All About Loans is a broker that can do this for you. We will work for you in sourcing the best rate loan available to suit your circumstances and your requirements
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