With the current worldwide financial climate being in such turmoil, even more difficult to come by. But many potential borrowers don’t realise the importance of where to check a free credit report from one of the major credit reference agencies.

Without realising it, your credit report might be revealing data that may hinder your ability to take out further credit. Some of this may not even be your fault. Worse still, it may even uncover that you have been the victim of identity theft!

Those people that have applied for credit and been rejected should certainly apply for their credit report data from at least one of the major credit reference agencies, such as Equifax. If you have been declined credit, ask the lender who refused you which of the agencies they were using when they credit vetted you and their contact details. Then write to them requesting a copy of your credit file.

It is also well worth asking for a copy of your credit file before applying for further credit so that any errors, or omissions, can be amended before you apply. This could prevent a rejection, which would also be recorded on your credit file and might count against you in further credit applications.

If you don’t already know how you can check credit reports for yourself, then it is very easy to do. The major credit reference agencies will offer a free service if you write to them and ask them for the file information and there are many online services doing the same. As an early identity theft detection method, you can also join schemes whereby you are notified when certain changes are notedon your credit reference file. This would alert you to sudden huge loan applications if someone was trying to steal your identity.

The free credit reports don’t show you exactly how the lenders are going to score you, but they give you a good basis for understanding what they are likely to be using. In addition, lenders will bear in mind other questions that they ask, such as your history with that lender, your annual household earnings and other details they ask you to divulge.

Your credit report shouldn’t reveal information for anyone else living within your house, but it will include details of who the credit reference agency believes are financially related to you, for example a spouse. If this information is incorrect, then it can be worth getting it corrected.

As an example, if your partner doesn’t go under the same surname as you, but has a better credit rating than you, then you may improve your credit rating by identifying yourselves as being financially related.

Conversely, if parent and non-dependent child, or others sharing a surname, reside together and aren’t financially related, it is worth ensuring that this information is correctly shown, in case they have a lower credit rating.

P.S. Watch this real case how do I get out of debt video.

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