What is a Credit Report

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What is a Credit Report
A credit score is derived from information held about your previous debts by credit reference agencies combined with details you supply when making an application. This is sometimes called a credit rating. Calculating a credit score allows a lender to gauge any risk involved in lending money to you. Your individual credit score is based soley on credit you have held before, not other occupants on your household. Things such as any criminal records you hold will not be used for part of your credit score.

Can I Work out my Credit Score?

A single golden credit score figure doesn't exist, it depends on a variety of factors. Lots of information, including the details you provide when applying for credit are used to work out your score. A lender has no obligation to tell you what their credit scoring process is, but can give you an overview of why an application as turned down.

You can caluclate your credit score by using information offered on your credit report, which you can obtain from credit reference agencies such as Experian and Equifax; Be wary that this score will not the same as used by lenders as is only an interpretation for guidance. Every company you apply with has their own procedures for calculating your score which uses a variety of information which might not be contained in your credit file; Details including time in your job and your annual income will play a big part. A credit score provided by one of the credit agencies should be used as a guideline.

Figuring out why you Were Turned Down

This decision is made solely by the lender you apply with. Credit reference agencies are not told why you have been turned down, so it's no good asking them. Most of the time, a score is calculated by a computerised process and if you fall below a specific level you merely not qualify. You can often learn what a lender's determination was loosely based on by requesting further details.

Is there a Blacklist?

No, there's no such thing as a credit blacklist. Credit agencies only hold facts on people. Information is obtained from public records or directly from loan providers, who report details back. A lender can form their decision based on a number of factors, including; -- credit reference agency information

-- details given on your application form
-- if you are already a customer, any existing details they hold
-- any bespoke procedures they have in place.

Will Another Lender Accept me if one Turns me Down?

No, this is not necessarily the case. Each lender will use a number of different factors when deciding whether to lend or not. It may be a good idea to order your credit record if you are turned down. Making lots of applications in a sure space of time may give the impression that you are trying to get excessive amounts of credit. With this in mind it's always best to assess your credit report before applying elsewhere.

Will Your Chances of Being Accepted Drop?

This varies from lender to lender, but more than a few applications within a given month may raise certain flags. Some lenders can provide quotes rather than having to make an actual application. This should not impact your credit report unlike making an actual application will. Several lenders will be unable to do this however. This is apparant if the cost of the credit depends on your score.

A quotation does not lead to an offer for credit. The only way of determining in the event you may be accepted is to make an actual application. The company will give details of their credit searching procedures before you continue. Also make sure to learn why you were turned down before moving onto another lender.

Will This Apply to Guarantor Centered Loans?

This type of loan takes into account the credit report of your guarantor rather than the applicant. Guarantor loans work on the basis that you can borrow more money because your application is guaranteed by a third party. These loans are suited for individuals with poorer credit because of this. It is normally the case that repayments will be marked back on the applicant's record to ensure that the applicant benefits from the repayments they make.