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WHAT INFORMATION IS CONTAINED IN A CREDIT REPORT?
WHY HAVE I BEEN REJECTED?
YOUR CREDIT REPORT
MORTGAGES MADE EASY
MAKING A DECISION
IF AT FIRST YOU DO NOT SUCCED
NO NASTY SURPRISES
WHAT INFORMATION IS CONTAINED IN A CREDIT REPORT?
Credit references agencies – the largest in the UK is Experian – collate information about your financial background and past behaviour and format this data into your unique credit report.
Click here to see your Experian credit report online for FREE
Lenders see this information when they decide whether or not to offer you a loan, mortgage or credit card. It influences their assessment of the likelihood that you will repay them.
Information comes from two main sources:
• Public records, such as court judgements, individual voluntary arrangements and bankruptcies. Your credit report also shows whether you are registered to vote – lenders use this as a precaution against fraud, to check that you are who you claim to be and live where you say you do.
• Information from lenders and financial institutions, such as records of the number of loans you have and whether you have ever missed a repayment.
It’s important that all this information is as up to date as possible and correctly reflects your circumstances. Then lenders will make the best-informed decisions – and you will get the right deal.
The easy way to check your credit report is to log onto CreditExpert, the credit monitoring and identity protection service from Experian. Click here for a free, 30-day trial, which will allow you to see your credit report as often as you like.
Why have I been rejected?
Lenders turn down millions of applications every year. If you are one of the unlucky ones, you should be given an explanation. If not, ask for some guidance.
For example, you may appear to be carrying too much debt from other sources or your credit report rang alarm bells, perhaps because you had missed some payments on a previous loan. It may simply be that you do not fit the lender’s profile for a particular loan.
To see the information lenders see, view your credit report online now for free with CreditExpert, the credit monitoring service from Experian.
To view your credit report online click here
You can always appeal against the decision. This may give you chance to provide further information. For example, your poor credit record may stem from a one-off event that no longer applies, such as a serious illness or enforced redundancy.
Finally, there’s nothing to prevent you applying to another company. Different lenders may take a different view. But be careful how many applications for credit you make in the short term.
If you allow a significant number of companies to search your credit report, this could damage your credit rating as it could be interpreted to mean that you are desperate for money or possibly that someone is trying to commit fraud.
It is always sensible to check your credit report before making any further applications. That way, you can be sure that the information in it is up to date and correctly reflects your circumstances.
You can view your Experian credit report (which lenders are currently basing their credit decisions on), for FREE.
Click here for your free Experian credit report
Mortgages Made Simple
For most of us, buying a home means applying for a mortgage – and success or failure could depend on your financial history.
Your Credit Report
Your credit report is your personal financial history. It includes a wide range of information on your credit behaviour, from your credit cards and loans to your repayment record, previous mortgages and details of overdrafts.
The report also confirms whether or not your name is on the electoral roll at your current address and how many times your credit report has been searched.
Credit reference agencies – Experian is the UK’s largest – hold this data on more than 40 million people and 24 million households. So it’s likely that they have information about you.
Click here to view your Experian credit report online for free and see the information mortgage lenders see
Making a decision
When deciding whether or not to give you a mortgage, the mortgage lenders look first at the details on your application form. If you don’t fit their criteria for being offered a loan, they are unlikely to search your credit report. Typical deal-breakers include being too young, insufficient current earnings or too short a self-employment history.
They may then look at any previous relationship that you may have had with them and how you conducted it.
The next step is to search your credit report. A lender may use this information to help create your credit score, by comparing you to past customers with similar characteristics. The result is a numerical assessment of how good a credit risk you appear to be. Normally, the higher your rating, the more likely the company is to lend you the money you want.
Getting a copy of your report before you apply for a mortgage will allow you to check that the information it contains is accurate and up-to-date.
For example, if you had a court judgment against you but have paid the debt, you should make sure the record reflects this. Equally, if you paid off the debt within one month, the judgment can be removed from your report. Or perhaps the fact that you registered to vote has been missed and your name has not been confirmed on the electoral roll. In this case, you should let Experian know. They will investigate and amend their records accordingly.
If you believe that some of the information on your credit report needs further explanation, Experian will help you to add a brief statement or Notice of Correction to your report. This will be seen and may be taken into account by any lender using the information to which it relates.
Click here to view your Experian credit report online for free and see the information mortgage lenders see
If at first you don't succeed
Lenders turn down roughly one-third of all mortgage applicants. If you are one of the unlucky ones, you should be given an explanation. If not, ask for some guidance.
For example, you may not be offering enough deposit or appear to be carrying too much debt from other sources. It may be that your credit report rang alarm bells, perhaps because you had missed some payments on a previous loan.
You can always appeal against the decision and ask the lender to look at your application again. This may give you chance to provide further information. For example, your poor credit record may stem from a one-off event that no longer applies, such as a serious illness or enforced redundancy.
Finally, there’s nothing to prevent you applying for a mortgage from another company. Different lenders may take a different view. But be careful how many applications for credit you make in the short term.
If you allow a significant number of companies to search your credit report, this could damage your credit rating as it could be interpreted to mean that you are desperate for money or possibly that someone is trying to commit fraud. If you know that you have been refused credit because of your credit report, it is always sensible to check it before making any further applications.
Click here to view your Experian credit report online for free and see the information mortgage lenders see
No nasty surprises
To help avoid any nasty surprises, you can keep tabs on your credit report by signing up for a free, 30-day trial of CreditExpert, an online credit monitoring service from Experian. It means that you can check your credit report at any time – invaluable when you are applying for a mortgage, when you often need to move fast. You will also be warned by a weekly email or text message when a significant change, such as a new search, is registered.
Joining CreditExpert also allows you to order a copy of your National Credit Score at the special offer price of £4.99. It only uses the information in your credit report but it will give you a good idea of how lenders will rate you.
And if you need to improve your credit report, the CreditExpert site contains plenty of advice, hints and tips that will help you to turn your dream home into reality.
Click here to view your Experian credit report online for free and see the information mortgage lenders see
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