Monday, April 23, 2012

Reporting on Credit

Borrowing money is necessary for nearly all of us at some time in our lives. Whether it’s to buy flights on a credit card, pay for an extension to our house, or even to pay for a house in the first place, credit is something that we will all need.

The likelihood of you getting credit for something is primarily based upon your credit rating. These credit ratings are built up without our awareness, and are based on every time that you’ve ever borrowed money or set up a direct debit, so sometimes they can be filled with hundreds of different items, and just one problem can mean that when you come to applying for credit, you find that you application is rejected.
The easiest way of guaranteeing that an application is successful is to make sure that you credit report is in good condition, and this is something that (contrary to popular belief) you do actually have quite a lot of control over. Even if you don’t think you’re going to apply for credit for a while, it’s important to get a free credit report from a company like Credit Expert from time to time – because it’s important to keep on top of your credit report.

An annual spring clean should be sufficient for most people, the reason that you need to do this is simple, sometimes mistakes get made and are put on your credit report. These can be mistakes that you’ve made, or they can be mistakes that someone else has made, but 99% of the time they’re easily rectifiable.
And if you don’t fix them, you could eventually find yourself with a problem. Like most things, if something’s wrong on your credit report, it’s a good idea to set it right as soon as you can.
Most of the time, a credit company will simply correct the error if you send them an email with the correct information. Sometimes you’ll have to go to the lending company directly and clear things up with them. By far the most common reason for a warning flag showing up on a credit report is that you’ve changed addresses and not notified one of your existing lenders. Simply by correcting this you can improve your credit rating.
Another reason for a spring clean is that it’ll make you aware of the credit items that you have outstanding, or of old contracts that you haven’t yet got round to cancelling. Every little inaccuracy, no matter how small, can affect your rating, so it’s best to make sure that everything is spick and span.
Finally, a good tip for improving your credit rating is simply to join the electoral roll, this helps companies prove that you are who you say you are, and that you live where you say you do. For more information on getting on the electoral roll, follow this link.

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