UK consumers need to have a fair knowledge and understanding of the nuances and dynamics associated with credit reports and other personal financial statements. If the mere mention of the term “credit report” can send shivers down your spine, then it is time for you to start learning about this dreaded “report” and learn to take it by its horn. It is not uncommon to see individuals who would prefer to go through the painful procedure of root canal than deal with their credit reports.
But we have to accept this as one of life’s bitter pills and you need to deal with them if you want to get your finances in order.
Credit reports are generated and disseminated by credit reporting agency, also known as credit bureaus. These profit-oriented companies collect, organize and analyze relevant information about the credit of individuals and then share this collated data for profit with banks, credit card companies, mortgage lenders, employers and landlords for purposes of determining the credit worthiness of such individuals. There are 3 credit bureaus in the UK. These are Equifax Ltd., Experian and CallCredit Plc.
You must treat your credit report as some sort of a charge sheet, where derogatory information and other allegations are listed. These include your place of residence, bills payment record as well as other negative events such as bankruptcies and lawsuits. This means that if you have applied for mortgage loan or credit card, insurance or personal loan, then each of the credit bureaus will have a credit report on file about you. In fact, defaulting in the repayment of cash advance loans can be reflected as negative information in your credit report once account is endorsed by your lender to a collection agency.
Just like with any other generated data, there is a strong possibility that there are inaccuracies in your credit reports. As of latest count, Equifax has on file some 200 million credit reports and they perform around 2 billion updating each month. With the sheer volume of data that they have to handle, there will be instances of omissions and inaccuracies. In one particular study, it was reported that about 80 percent of credit reports on file have various inaccuracies or contain incomplete data.
These inaccuracies and problems in your credit report may significantly affect your credit standing and may even impact on your chances of getting a job. Thus, you need to have a fair knowledge and understanding of credit reports and learn to manage them to make sure that it is an accurate reflection of your credit reputation.
Ideally, the data in your credit reports in each of the three credit reference agencies should perfectly match. However, it is safer to assume that there is a good chance that there will be discrepancies. Generally, these credit bureaus have different sources of information and data and simple encoding miscues can become a major discrepancy on the credit report and these inaccuracies will remain on file until you initiate the move for the appropriate correction or adjustment of such information in your credit report. You have to remember that these inaccurate information and data will remain in your credit report until you make the official request for correction.
Tags: collection agency, equifax, payday loans
