What is your Credit History?
Your credit history is the information that a lender will use when they are deciding whether to offer you credit. This information is usually contained in your credit report. It will provide the lender with details about the number of accounts that you have and what your repayment history is like. Checking your credit report also allows lenders to check that the personal information you have given them such as your address and date of birth. Read More >>
What If I Have A Bad Credit History?
Having a bad credit history can make getting accepted for new credit difficult. Lenders may be reluctant to lend to you because they will be worried that they may not get their money back. This does not necessarily mean that you will be refused. But you may find that you are only offered credit at a higher rate of interest. This helps to protect the lenders from the risk that their money will not be paid. Having a bad credit history does not mean that you will not be offered credit. However it does mean you will not get access to the best deals.
Will All Lenders Check My Credit History
Checking a credit report is usually a standard part of any lenders process. When they are making a decision about whether to lend money. You will know if a lender is going to check your credit history. This is because they will need to ask your permission to access your credit report. When a lender checks your credit file the search will be recorded.
Can I Improve My Credit History?
There is not a lot you can do about your credit history because it is information about things that have happened in the past. However, there are things that you can do to improve your credit report in the future.
If you do get accepted for more credit. Then you can start to improve your credit rating by ensuring that you make any repayments on time. This will help to show other lenders that you are now able to manage your account. This may make them a bit more trusting of you.
It is also a good idea not to take out too much credit in a short space of time. This can indicate that you have a reliance on credit and may be likely to have financial problems in the future. This is likely to lead to rejection. Even if you have a good credit history and so it is something to be aware of if you have had financial problems in the past.
If you do have something such as a credit card or catalogue. It is a good idea not to get too close to your credit limit. Again, being close to the limit may indicate that you are finding it difficult to manage the credit that you do have. This is something that a lender would be concerned about if they were thinking of lending you some money.
Can I Check My Own Credit History?
You can ask for a copy of your own credit report and this can be sent to you by post or viewed online. You can look at your report as many times as you like and it won’t affect your rating. If you are looking to rebuild your credit rating than having access to your report on a regular basis can help you keep track of how things are improving.
It is also a good idea to check your credit report if you are thinking of applying for a large piece of credit such as a mortgage or car loan, especially if you have had financial difficulties in the past. This is because there may be information on there that is incorrect which may affect your chances of being accepted. For example, there may be an account that you have cleared that is still showing as being in arrears.