Welcome to all Insurance Seekers
Your Credit Score
Credit scoring is a bit of a black art. Many people haven't heard of it and those who have generally don't know how it works, how it affects them and what their own credit rating is. But it is very important because it can have a negative effect on your life if things aren't as they should be.
If you apply for a credit card, loan, mortgage or overdraft, your credit history will be checked. This also happens if you get a mobile phone on contract or pay insurance premiums monthly. A poor credit history can result in rejection so it's best to know where you stand.
Credit history details are compiled by credit reference agencies - Experian, Equifax and Callcredit. Information is obtained from several sources, such as the electoral roll, court records, various financial organisations and existing bank accounts. This information is made available to their customers, typically the companies from which you want to borrow money.
If you do apply for a loan or to open an account, your credit history is checked and rejection may result if it's bad. These companies are interested in making a profit and a bad risk may prevent then doing that.
You can get a copy of your credit file from one of the agencies. Check everything, even the smallest detail. These agencies process huge amounts of data and mistakes are inevitable. Ensure they've got your address right, you're down as being on the electoral roll, all debts are listed accurately and payments are recorded correctly. Even a small mistake can cause you problems, so write to the agency and get it put right.
You can safeguard your credit history by making sure you pay all your bills on time, never miss instalments and stay within account limits. If you're not on the electoral roll, get a form from your council and register. Stability also helps, so it's better to be a homeowner than to rent and to be employed rather than self-employed. You can be adversely affected by others, such as having a joint account with someone who has a poor credit history.
Many credit searches in a short time can have an adverse affect, so space out your applications. A little knowledge and care can do wonders for your credit history and improve your chances of getting what you need.
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