UK credit report and its importance

Credit report is a record of an individual’s or a company’s monetary transactions including details about late payments and bankruptcy. As soon as a person fills out an application for credit from a bank, Credit Card Company or a store, the information is sent to a credit bureau. Apart from this it also sends regular updates on the status of the credit accounts, address and other significant changes made since the time the person applied for any credit. Over the period, credit cards have gained immense popularity in UK. As per a recent study more than third of every adult in UK will have credit cards. It is essential to know that UK credit report can meet serious consequences if credit card is not handled carefully.

UK credit report is important for a number of purposes. They are not merely used by lenders while deciding over the money lending issues but also when you wish to apply for ‘rent a flat’ or apply for insurance. You can even use it while applying for a job. If you have a bad UK credit report, chances are you may have to encounter certain problems in getting a loan. UK credit scores are calculated through Equifax, Experian and Transunion. UK credit report accounts for 35% of an individual’s score, sums owed, period of the credit history and details on new credit that a person has and different types of credit used. In case your credit rating is high, it suggests that you can get loans faster. It means that the credit decisions are being made in you favor at a much faster pace. Owing to your good UK credit report, you can avail more credit with relatively lower rates of interest.

In order to avoid any credit card fraud it is essential to consider the following tips:

• Never reveal your credit card details to credit card agents. More often than not, they try to obtain crucial details by cold calling.

• Do not respond to emails that ask for your personal financial information. It is important to remember that banks and UK credit card providers do not solicit such information through emails, as they are aware of the possible dangers of credit card scams through mails.

• Be careful while disposing your financial statements. Do not throw it in the garbage bin. Though it is difficult to believe, credit card fraudsters often go checking through people’s trash to check if they have thrown away any important financial information.