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Credit report myths
Top Credit Report and Credit Score Myths

If you have a financial record of any kind, you will have a credit report and a credit score.  Furthermore, if you are like most of the people in the UK you will have bought into many of the myths that surround the data that follows you around for all your adult life.

Here are the top myths surrounding this murky issue of your credit report and credit score:

MYTH No. 1:  All credit companies hold the same information.

This isn't necessarily the case.  The UK has three credit agencies that run checks on you every time you apply for a financial product of some kind and the chance of them all having exactly the same credit report is unlikely.

MYTH No. 2:  Credit reports are all 100% accurate.

No company is incapable of making mistakes on your credit report which can affect your credit score.  While you can no longer be connected with any other person who is living in your household now or has done in the past, there is still room for the wrong information to be recorded on your credit report.  It's worth checking your own credit report and credit score to see whether all the information about you is correct.

MYTH No. 3:  A bad credit score means you won't get any finance.

Again, not true.  It will make it harder for you to get finance, but it won't be impossible.  The main difference is that if you are approved for finance you might not get such a low rate of interest.  This is because, with a poor credit score, you are deemed to pose a higher risk of defaulting on your payments, according to your past history.

MYTH No. 4:  Credit agencies decide who gets credit and who doesn't.

The decision on whether or not you are accepted for the loan, credit card, or other product you have applied for rests solely with the company who has requested the credit report in the first place.

The role of a credit agency is to pass on the information it holds about your financial history, not to give advice on whether or not you should be accepted or denied for any particular application.

MYTH No. 5:  Credit agencies will tell other companies how many times you have been approved or denied credit in the past.

Credit agencies will reveal how many times you have applied for credit – and that's it.  They don't reveal if you have had credit applications turned down in the past.  Any unsuccessful applications you have made will stay with you (and therefore stay on your record) for twelve months.

MYTH No. 6:  All credit agencies have a blacklist of people who should not be given credit.

Credit blacklists are a figment of the imagination.  Everyone is different where personal credit history is concerned – some people have an impeccable credit report and credit score while others have a poor one.  The standard of your own individual record will help lenders decide whether or not they should take you on as a customer.  Your name does not pop up on a list of any kind; every case and application is taken on its own merits and while one lender may reject you, another may take you on.

There are so many myths surrounding what credit agencies do, what really goes on your credit report, and what determines your credit score that it can help to put your mind at ease by educating yourself as to what really goes on.

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