Have Your Credit Ratings Explained To Ensure Mortgage Approval.
Who makes this credit history?
In the UK, there are three agencies that put together credit histories. Equifax, CallCredit and Experian, who have all devised systems and calculations that allow credit ratings explained clearly to lenders who want to see how you have coped, and how you may cope with any more debt. They watch, collect and sell their information to the lenders, or to you.
How do they know my financial history?
Every time you have signed up for a financial responsibility, from a mortgage to a mobile phone contract, all the information of that loan is sent to the three agencies, so they can have your credit ratings explained in the future. If you are late with a payment, that is recorded. If you pay off a credit card or a loan in a good fashion, that is also noted by the agencies. But this isn't Big Brother watching you - their information is strictly protected and only given out with your permission. Only after you agree can your credit score be explained by the credit agencies to the lenders.
Who looks at my credit rating?
Whenever you have applied for a financial responsibility the lender will have asked you if they can look at your credit history as a way of determining how much they are happy to lend you. If your credit ratings explained properly, the lender will be able to see if you are worthy of a loan.
Can I see my rating?
Of course, it's your history. The agencies, Equifax, Callcredit and Experian, offer services where credit ratings explained
fully for a small fee. So go online, sign up and see what lenders can see. If you have been refused credit before, or are worried about some past discrepancies, then ask to have your credit score explained to you. Any mistakes or problems need to be rectified before you apply for a mortgage, a credit card or even a small loan - the last thing you need is for a clerical error or a misunderstanding get in the way of your mortgage or loan.
Is the rating permanent?
There will always be a record of all your financial histories, but lenders are not interested in your whole life. Dealings within the last two or three years are all that lenders are mainly interested in when they ask for credit report explained. This means if you have had arrears, but have since rectified all your debt problems, your credit history will be pretty clean. Nevertheless, from this credit ratings explained, it is obvious that it is vital for all borrowers to make sure they can keep their credit clean.
Regularly request your credit ratings explained to you and always be mindful of what decisions you make financially as they will affect future decisions. And most of all, if you are worried, talk to an adviser. They will lay everything out for you, give you your options and make sure your credit score explained fully.
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