Before making any application for car finance, a loan, credit card or mortgage, we recommend that you know where your current credit score stands! Your credit indicates to finance lenders how good you are at keeping up with your finances and credit agreements. By knowing how to check your credit report and where to check it, you can get an insight into what potential lenders see and make any improvements where needed. Credit score isn’t the only factor lenders use to assess your creditworthiness, but it does play an important role in the process.
Why should you check your credit report regularly?
Checking your credit is a useful financial tool to give you an insight into how previous credit affects your ability to borrow today. Your credit report can show you how handling credit correctly can boost your score and also give you advice on how to improve a low credit score. We recommend getting into the habit of checking your credit report each month.
- Learn new financial habits. Your credit report can be insightful and can give you advice on how to improve your current credit score. Checking your credit history regularly teaches you the factors which affect your credit and how to put yourself in a better credit position for future lenders. Getting car finance with good credit can be easier to obtain and could get you a lower interest rate.
- Know what lenders see. When you apply with us, we run a soft search credit check for car finance on you to see where you currently stand on the credit scale. This type of check won’t harm your credit score and won’t be recorded on your credit file. By checking your credit report yourself, you will get an idea of what we will see and what your potential lender could see so there’s full transparency across the board!
- Spot any mistakes on your report. Did you know misinformation or personal details that aren’t up to date can have a negative impact on your credit? It also makes it harder for lenders to find you if the information on your credit file doesn’t match what you put on your application. If you need to update anything on your credit such as a change of address, dispute an error or remove a financial association, you can contact the agency who provided your credit report.
- See your credit searches. Your credit report will show you any credit searches which have been performed on your credit report. This happens when you apply for credit and if a lender requires a credit search to be performed. Hard searches are recorded on your credit report and making multiple searches in a short space of time can harm your score, You can also see the outcome of each search and whether you were declined or approved for finance.
How to check credit for FREE:
All consumers have a legal right to check their credit report and it’s easy and free to do so! In the UK, there are 3 main credit reference agencies, they are Experian, Equifax, and TransUnion. Each of them sets their scoring system and your credit score may differ when you check with each agency. However, they all usually use similar criteria so your score shouldn’t start too far from the truth.
- Experian – Free to use.
- TransUnion – Free to use.
- Equifax – Free for 30 days then £14.95 a month.
What information is listed on your credit report?
The information held by credit reference agencies relates to your previous history of borrowing and your personal information. Lenders can get access to information such as your:
- Full name, address, and date of birth.
- Types of credit accounts you’ve had in the past.
- Payment history and credit report codes.
- Personal financial links.
- Your electoral roll status.
- Finance applications you’ve made.
- Your credit limits.
- Amount of debt you owe.
The information on your credit report helps future lenders to decide if they want to offer you finance or not, based on your previous history of borrowing. Keeping your information accurate and up to date is important to your financial life.
Get a free no credit impact quote.
When you apply for car finance with us, we only run a quick soft search credit check on your application which won’t harm your credit score. We will then be in touch with a finance decision from one of our trusted lenders.