Credit report factors to keep an eye on

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Credit report factors to keep an eye on

We all know what a credit report is and why it is important when it comes to applying for a mortgage, loan, or any form of credit.

But what things should you be checking regularly to ensure your credit file is correct and up to date and won’t cause you harm further down the line?

Searches
When looking at your credit report, you will find ‘searches’ – these can be either hard or soft, and there is a big difference between the two. You need to make sure you recognise all of the searches featured on your report. For more information about the difference between hard and soft searches, read our previous blogs: link

Accounts
You need to check that the accounts section is up to date and accurate. This lists all of your current credit accounts as well as your bank accounts. Keep a close eye on this section as it’s possible that fraudsters could set up accounts in your name, this information will be shown here if so.

Payment History
Showing all of your payments made to your creditors such as loans, credit cards and even utility bills, your payment history should be updated monthly and will reflect your current financial situation. Even one missed payment has the ability to cause issues when you are looking for credit. Keep a close eye on late payments especially from utility companies if you have disagreed with a previous bill or amount.

Financial Associates
Anyone financially linked you to will appear here, including joint bank accounts or joint credit accounts. If you have ever shared a property before, check to make sure that any financial links to these people are stopped once you move out and keep this section up to date if you split with your partner. Forgetting to do so could prove costly when you come to apply for credit.

We recommend you check your report regularly to keep on top of things, especially if you are planning on applying for a mortgage in the next 6 months – we recommend you use Experian.

 

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