| When you apply for a homeowner loan, mortgage or | | | | To request a credit report write to one of the credit |
| credit card, the lender will check your credit record as | | | | reference agencies giving your full name, previous |
| part of processing your application. A poor credit score | | | | name if married, address and how long you have |
| means 'high risk' in the mind of the lender and can | | | | resided at that address. Also include a copy of a |
| make it difficult to obtain a loan, lenders who lend in | | | | recent utility bill. Also include any address where you |
| these circumstances tend to be more expensive | | | | have lived over the last 6 years. |
| because of the high interest charged. | | | | Equifax Credit File Advice Centre |
| It is common for lenders to request credit reports from | | | | PO Box 1140 |
| the three main credit reference agencies, Experian, | | | | Bradford BD1 5USequifax.com/ |
| Equifax and TransUnion and use the mean score | | | | Experion Consumer Help Service |
| (average). Credit reference agencies are not | | | | PO Box 8000 |
| responsible for assessing the information they hold, nor | | | | NOTTINGHAM NG1 5GXexperian.com/ |
| do they maintain a 'credit blacklist'. It's the job of the | | | | TransUnion |
| lender to assess the information and decide whether | | | | P.O. Box 6790 |
| to lend or not. Although different lenders might work | | | | Fullerton, CA 92834transunion.com/ |
| from the same credit report their scoring systems | | | | It's likely that each credit agency holds slightly different |
| may be different, so you could be refused credit by | | | | information depending on which agency your creditors |
| one company and accepted by another. | | | | report chose to. For this reason it is important that you |
| The files that credit reference agencies maintain on all | | | | check your credit report with all three agencies. |
| of us contain a variety of financial information; for | | | | Once You Receive the Report |
| example, a missed payment on your credit card will be | | | | Check the credit report carefully and contact the credit |
| visible on your credit report for 3 years, while a CCJ | | | | reference agency immediately if you spot any errors |
| will be visible for six years. They also maintain details | | | | in your personal information requesting they rectify the |
| of bankruptcies, IVAs and information from the | | | | inaccuracies. What if the credit report is inaccurate? |
| electoral roll. | | | | Although Experion and Equifax both offer an online |
| However, that these credit reports can contain | | | | process to challenging any incorrect information on |
| account histories that are incorrect, outdated and | | | | your credit report it is quicker to write to these |
| incomplete. Credit reference agencies do not verify | | | | companies by registered delivery. Spend time putting |
| information they receive from your creditors, the simply | | | | everything together before you contact any credit |
| log it. Believe it or not, it is your responsibility to ensure | | | | reference agency. |
| your credit report is accurate and up to date. | | | | |
| An adverse credit rating can be expensive. Most loans | | | | 1. Make a copy of your most recent credit report and |
| and around 25% of credit cards charge a higher | | | | highlight any missing, out of date or incorrect |
| interest rate if you're credit rating isn't exactly perfect. | | | | information. |
| So, it's in your interest to ensure the details on your | | | | 2. For identification purposes include at least 3 forms of |
| files are up to date and correct. What information is | | | | identification like a recent utility bill in your name at your |
| used to calculate your credit score? Credit scores are | | | | current address, a recent bank statement, a copy of |
| calculated on historical data: | | | | your driver's license or passport or your social security |
| | | | number. |
| 1. Settlement history | | | | 3. Carefully piece together proof of any errors in the |
| 2. Total outstanding debt | | | | report and include supporting or corroborative |
| 3. Length of credit history | | | | documentation. Things like checks or receipts for cash |
| 4. Type of credit (secured or unsecured) | | | | and credit card statements that show when payments |
| 5. Frequency of borrowing. | | | | were made. |
| N.B. Items 1 and 2 count towards 65% of your overall | | | | 4. In case of identity theft, include any police reports |
| credit score. So, based on historical data, your credit | | | | you have. |
| score provides the lender with a reliable indicator as to | | | | 5. If there is related court judgments or bankruptcy |
| whether a loan should be granted or refused. | | | | include all documents or discharge papers. |
| Have you been Refused Credit for no apparent | | | | 6. Attach a cover letter stating that you are disputing |
| reason? | | | | your credit report, clearly state the reasons why and |
| If you have been refused credit it is most likely the | | | | reference your supporting documents as required. |
| result of an adverse credit report. Many credit reports | | | | 7. Be meticulous. |
| contain inaccurate information which will affect your | | | | 8. Do not send original documents make copies of |
| ability to borrow in the future and, in some cases, your | | | | everything. |
| ability to gain employment especially if you work in the | | | | 9. Post it registered delivery so that you have a |
| financial sector. A common reason for being refused | | | | delivery receipt. |
| credit is that you simply can't be found on the local | | | | What happens now? |
| electoral role. If you haven't registered yet you should | | | | The credit reference agency will commence |
| correct this as soon as possible. | | | | investigating the items in question within 30 days. They |
| How do you check your credit score? | | | | will contact any creditor who has supplied credit |
| The lender you approached has no legal responsibility | | | | information you claim to be inaccurate. The creditor is |
| to tell you why you were refused a loan or supply any | | | | then required by law to investigate your complaint and |
| information regarding your credit score. However, the | | | | report its findings. If the disputed information turns out |
| lender is obliged to give you the name, address and | | | | to be inaccurate, the creditor must notify all nationwide |
| telephone number of the credit reference agency (or | | | | credit reference agencies, so they all can correct the |
| agencies) they used. You have 60 days after | | | | information in your file. During this process log every |
| receiving the denial notice to request a free copy of | | | | phone conversation and keep copies of every letter or |
| the report. Gaining access to this report should tell you | | | | e-mail that you send or receive. |
| everything you need to know and catch any instances | | | | If your challenge is successful, the credit reference |
| of identity theft. | | | | agency will send you written confirmation and a free |
| How do you request a report? | | | | copy of your updated report. |