| Credit cards, personal loans, mortgages and | | | | - Salary details given on the application |
| other forms of personal credit are an | | | | form. |
| everyday part of financial life for all UK | | | | |
| consumers. Looking at the figures for UK | | | | Lending organisations combine the data |
| personal debt shows that Britain appears to | | | | obtained through a credit report, along with |
| be addicted to borrowing money and still | | | | information acquired from an application |
| continues obtaining more from the financial | | | | form, to produce a credit score. This score |
| institutions. By the end of 2005 the UK | | | | represents a measure of an applicants |
| personal debt levels stood at a record 1,148, | | | | likelihood to repay debts and to make any |
| with 83% of this debt consisting of secured | | | | repayments on time. |
| mortgage loans. Due to the nations reliance | | | | |
| on credit of all forms, it is extremely | | | | If an applicants score falls below the |
| important to keep a close eye on your own | | | | lenders acceptable risk threshold, or they |
| personal financial history and keep up to | | | | don't fit an ideal customer profile, then the |
| date with the official credit check reports | | | | application may be completely rejected. It is |
| which can help prevent fraud, and make the | | | | also possible that a low score may result in |
| difference between acceptance at a favourable | | | | acceptance, but at a more expensive interest |
| interest rate, or outright rejection just | | | | rate than might usually be offered. |
| when the money is needed the most. | | | | |
| | | | Some credit card providers, such as the Asda |
| In the UK there are two main credit reference | | | | supermarket chains finance services, now |
| agencies which hold a wide range of financial | | | | provide applicants with a copy of their |
| information detailing a persons continually | | | | credit reports with all applications, |
| evolving financial history, these are | | | | however, to obtain the best deal it is |
| Experian ( ) and Equifax ( ). By obtaining | | | | vitally important that borrowers do some |
| a copy of your report from each of these | | | | shopping around. When shopping around for |
| sources, (as they may contain different | | | | credit however, try to obtain as much |
| information), you can not only check the | | | | information as possible prior to making a |
| accuracy of the information stored and look | | | | formal application for credit. Whenever any |
| for any potentially fraudulent entries, but | | | | application for credit is made, a footprint |
| you can also request that any incorrect | | | | is left on the credit record showing that a |
| information is amended to prevent possible | | | | search has been made. Credit companies see |
| future credit problems. | | | | lots of footprints as an indicator that the |
| | | | applicant may be in severe financial |
| Each lender will weigh the information | | | | difficulties or even that some form of fraud |
| contained in a persons credit file | | | | may be evident. Using one of the various |
| differently. However there are universal | | | | online financial comparison websites, such as |
| contributing factors which include: | | | | Moneynet ( ), enables you to see what is on |
| | | | offer, and what general market rates are |
| - Electoral Roll information for a persons | | | | available, before any financial commitment or |
| currently registered address. | | | | full credit search is required. |
| | | | |
| - Defaults on any financial repayment | | | | Even people who are not looking to obtain |
| contracts, such as loans, mortgages, etc. | | | | additional credit may find a credit report |
| | | | useful for peace of mind, and to ensure that |
| - Employment history for mortgage, credit | | | | their credit details are not being used for |
| cards, loans, hire purchase and finance | | | | fraudulent applications, or as part of the |
| agreements. | | | | growing disturbing phenomenon that is |
| | | | identity theft. |
| - Any County Court Judgments. | | | | |
| | | | Disclaimer: |
| - The complete amount owed and the number of | | | | |
| credit facilities used. | | | | All information contained in this article, is |
| | | | for general information purposes only and |
| - The number of new credit facilities that | | | | should not be construed as advice under the |
| have been applied for (both successful and | | | | Financial Services Act 1986. |
| unsuccessful applications). | | | | |
| | | | You are strongly advised to take appropriate |
| - The type of credit used. | | | | professional and legal advice before entering |
| | | | into any binding contracts. |