Your credit report is a history of your previous payment records which allows companies to produce
a credit score on you which is basically a numerical representation of your statistical likelihood to repay credit.
The information held on your credit report is ascertained from public records like electoral roll information,
court judgments, individual voluntary arrangements and bankruptcies and of course information provided by banks
and building societies and financial institutions.
When you make an application to borrow
money the company you apply to will review your credit report and give you a credit score. This score is then used by them to
identify the risk of offering you credit and the score will decide whether credit is offered and the interest rate offered .
The report will also show them how often you have applied for credit recently. To get a good credit record
you will have to show a track record of paying bills on time with very few or better still no
missed repayments.
Do not apply too often for credit. Loan companies will not give you the best
rates if they see on your credit report that you have made lots of applications.
If you are struggling
to get credit because of a lack of credit history. The credit card provider Vanquis offers a credit card that is designed
for those with poor or a lack of credit history to help you build up a good credit history. Further information here
