Every one of us has a computer file somewhere that contains all the information that makes up our credit history even though not many people would spend too much time thinking about it. Included in this information is our income level, our current and previous address, our outstanding debt and how much extra credit we currently have available on us. It will also show things like our repayment habits, whether or not we pay bills on time and if we have had any county court judgments made against us for payment.
What about checks?
To companies who wish to see it for a fee, it will be made available and it is surprising how many different types of companies now routinely make use of such reports. When deciding whether or not to give you a loan, there was a time when only banks and other lenders used credit reports. However, these days, if you are for example thinking of renting a property, it is likely that the property agency will require a credit check in order to satisfy itself that you will pay your rent on time. Also making use of credit reports when assessing insurance premiums are insurance companies. Credit reports are what large employers are also using in order to screen job applicants when they assess candidates.
It can therefore be seen that your credit rating can have a huge influence over you and your life. There are many important decisions that you may never have thought to be relevant to your credit history and this can affect those decisions. An example would be not being too worried when it comes to leaving an old phone bill unpaid after moving house but this can actually have some serious consequences.
How to Keep a Healthy Credit Rating
There are several tips that you can follow in order to ensure that your credit card rating is as healthy as possible. You can for instance pay your bills on time and reduce the amount of outstanding debt you have. You should also know that time is on your side because most negative elements on the report will not last forever.
Take advantage of your right to view your credit report because this is generally a good idea since you will be allowed to make sure it is accurate. If any negative information is found on the report that is not correct, you can then have it corrected or amended. It is the duty of the credit reporting company to keep all information accurate as well as up to date. Because it can make a huge difference, you should always inform the reporting company of any errors and give them the correct information.
What about checks?
To companies who wish to see it for a fee, it will be made available and it is surprising how many different types of companies now routinely make use of such reports. When deciding whether or not to give you a loan, there was a time when only banks and other lenders used credit reports. However, these days, if you are for example thinking of renting a property, it is likely that the property agency will require a credit check in order to satisfy itself that you will pay your rent on time. Also making use of credit reports when assessing insurance premiums are insurance companies. Credit reports are what large employers are also using in order to screen job applicants when they assess candidates.
It can therefore be seen that your credit rating can have a huge influence over you and your life. There are many important decisions that you may never have thought to be relevant to your credit history and this can affect those decisions. An example would be not being too worried when it comes to leaving an old phone bill unpaid after moving house but this can actually have some serious consequences.
How to Keep a Healthy Credit Rating
There are several tips that you can follow in order to ensure that your credit card rating is as healthy as possible. You can for instance pay your bills on time and reduce the amount of outstanding debt you have. You should also know that time is on your side because most negative elements on the report will not last forever.
Take advantage of your right to view your credit report because this is generally a good idea since you will be allowed to make sure it is accurate. If any negative information is found on the report that is not correct, you can then have it corrected or amended. It is the duty of the credit reporting company to keep all information accurate as well as up to date. Because it can make a huge difference, you should always inform the reporting company of any errors and give them the correct information.
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