How good is your credit history

credit reportWhen you apply for financial products, lenders will normally check your credit report and use the information, along with their own processes, to assess whether you are likely to repay what you owe on time. This helps them decide whether to offer you the product and which terms to set, such as interest rates.

Other people may check your credit history too. Prospective landlords and employers may see elements of your credit report, so it can also affect your chances of renting a home and job prospects.

Your credit score will be affected by a wide range of factors, including what credit you have had in the past and how you repaid it. This, in particular, helps the lender establish whether you are more than likely going to repay credit in the future.

There is a common misconception that if you do not have any credit you will, by default, have a good credit score.

Not having any credit can give a lender the wrong information, when the lender carries out a credit check, they are looking for a credit profile. If you hold a credit card and use it regularly and repay on time then you are building a credit report over a period of time, this can then be used by the lender as to the credit worthiness and build a picture as to how you conduct your finances.

You should also consider that identities can and are often stolen for the sole purpose of defrauding companies and obtaining goods or services paid for under your name.

With this in mind you should check your own credit report regularly to ensure that nothing has been taken out in your name.

You can request a copy of your credit report from or


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