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When assessing your loan application lenders will have a look at the information held about you by a credit reference agency. There are three credit reference agencies in the UK - Experian, Equifax and MyCallCredit -and they collect information from banks, lenders and other institutions you have a financial relationship with, such as phone and utility companies.
The Consumer Credit Act 1974 gives you a statutory right to see your credit reference files by simply writing to the agencies, with a £2 fee. Alternatively you can sign up for a credit monitoring service with one of the credit reference agencies and be alerted to any changes made to your credit file or any fraudulent activity.
If you find an error in your report, immediately write to the credit agency to ask for it to be corrected. If you don't get even minor mistakes changed they could all count against you when a company uses your credit report to make a lending decision. If you have fully paid a CCJ or your bankruptcy has ended, make sure this is shown on your report.
Contrary to popular belief there is no such thing as a credit blacklisted address. Lenders can only carry out credit checks on people, not on an address. So any previous people at your address shouldn't affect your credit score. And unless you have a joint account, loan or mortgage with someone else, your credit score is not affected by anyone in your family or your partner.
If you split up with someone you have had joint finances with, once the accounts are separated always write to the credit reference agencies and ask for a “notice of disassociation” to be put on your account. This will stop their credit history affecting yours in the future.
The way you manage credit will affect how keen lenders are to offer you a loan. If you have a credit card and make the required payments on time lenders might view you more favourably than someone who has never borrowed any money at all. However, if you have missed payments in the past or have been pursued by debt collectors or the courts for money, this will count against you.
What to do if you are refused credit
CashQuestions Guide to Unsecured Loans
CashQuestions Guide to Secured Loans
CashQuestions Guide to Choosing a Loan
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