Credit reports have traditionally been used by lending companies to assess an individual’s suitability for a loan before it is granted. Although there are never any solid guarantees that a loan will be fully repaid in accordance with the terms of the contract, lenders need to have as much information as possible available to them in order to make an informed decision regarding a loan application.
Credit reports assess an individual’s credit history and current financial circumstances. Important information is retrieved from public records, previous lenders, current lenders and financial institutions. Electoral role information, individual voluntary arrangements (IVAs), country court judgements (CCJs) and bankruptcy are all taken into account along with any loan applications and existing credit accounts with other institutions.
Contained within the report is information on whether payments have been kept up-to-date, are generally 1-3 days late, 4-6 days late or if a previous credit agreement has not been honoured and no satisfactory responses have been given to correspondences from the lender.
However, the tables have been turned slightly and consumers can now arm themselves with this information before making an application for a loan which, if refused, may further damage their credit rating.
Experian is a well-established UK credit reporting company that provides its members with unlimited access to a full report detailing their credit score along with expert advice on how to improve their credit rating and where to look for the most appropriate finance deals. Another key benefit of their service is that it enables members to check their score every time they apply for credit as all information stored within the report is 100% accurate and up-to-date.
People are sometimes sceptical of credit reports, largely due to them not having used one. Experian make it clear that their members are not just paying for a one-off check of their credit score; this is a more comprehensive service that can help individuals keep check of their finances throughout the year and work out for themselves when they are in a strong enough position to apply for a new line of credit.
In fact Experian are so confident in the befits of their CreditExpert credit reports that they are offering those considering annual membership a 30 day trial period where they can try the service out for themselves. The trial period allows potential customers to check their current credit score, read a full report on how their score has been calculated and understand why it is as it is. Expert advice is also available, along with credit matching and identity fraud expenses insurance.
For more information about the benefits of an Experian CreditExpert credit report, visit their website at www.creditexpert.co.uk