Wednesday, 25 January 2023

When will my credit score be checked?

There are certain times in your life when your credit report is likely to be checked. Many people aren’t aware of how bad credit can affect them or limit them in certain ways. Because these times are often important milestones, such as applying for a home loan or new job, it’s important to stay on top of your credit score and fix any problems proactively.

When good credit counts

Having a good credit score is important when it comes to many key life events. For example, an employer may run an inquiry before hiring you and banks and lenders are likely to check your score before authorising “pre-approved” credit card or insurance offers. Inquiries are also typically made when you apply for:

  • Home loans
  • Car loans
  • Credit cards
  • Personal loans
  • Mobile phone contracts

What affects your credit score?

Credit reporting bodies use specialist algorithms to calculate their credit scores. A number of factors can have a negative impact on your credit score and may include:.

  • Too many credit enquiries
  • Late or missed payments
  • Court judgements on debts
  • Undischarged bankruptcy

Tips for repairing your credit score

  • Get a copy of your credit report, so that you know if there are problems that need correcting.
  • Challenge any inaccurate information on your credit report and take proactive steps to fix any issues and repair your credit right away.
  • Always pay your bills on time, debts more than 60 days overdue will result in a default being listed on your credit report..
  • Shop around for the best finance deals, but only apply for the one you want.
  • Don’t apply for more credit unless you really need it – limit the number of credit cards you have.
  • Avoid “clear-outs”; these occur when creditors make reasonable efforts to get in contact to seek payment from you but are unable to get in touch.

Worried about your credit history?

If you are concerned about your credit history and how it may affect you, you can find out what’s on your credit report free of charge. If there is a blemish on your credit file, like a default (black mark), there is help to turn things around. Get started to repair your credit report today.