Have you thought about your Credit report? Do you know what all those commercials are all about, with credit reports?  A Credit Report can or may change your life.

The words ‘credit report’ are often spoken in hush tones and receive eye rolls when it is actually mentioned. This is because for many years, credit report companies have been on the backs of the public to check and evaluate their credit score to see if they can improve it. The problem here is that you’re fed a tonne of financial jargon that you simply don’t understand. But is your credit report really that important? In short, yes, and we’re here to tell you why your credit score should mean more to you so that you can get your finances back on track.

It’s important to understand exactly what a credit report is. Even if you’ve never taken a loan or in fact, been in debt, it doesn’t mean that you’ll have a gleaming report. Lenders in all walks of life such as mortgage lenders, loan sharks, and even car finance companies look at your credit report whenever you apply for something, and if they can’t see anything on your file (good or bad), then it may not work out in your favour.

Buying a home, for example, is a large purchase that many people strive for to create financial stability within their lives. Mortgage lenders will look at your credit report to see how good you are at handling your money. After all, they could possibly be helping you buy your own home! Lenders need to see that they are lending their money to someone trustworthy, and that you’re going to pay their money back to them.

So how can you improve your credit score if you discover it’s low?

• Make sure that you’re wise with your money. Pay bills on time and try to avoid using your overdraft.

• Altrua are a mortgage broker that offer a calculator to help their customers find out how much they could be paying on a mortgage, so if you’re applying for one, it might be worth checking it out. They can also help you find lower rates.
• Get yourself onto the electoral roll. The more lenders know about you, the bigger chance you have of being accepted.
• If you don’t have a history with your finances such as loans and finance, it might be an idea to take one out to show that you can keep up with repayments. Something simple as a contract mobile phone will help build your credit history.
• Keep track of your credit score using a handy app like Clearscore. They not only help you see your credit history, but they also give you tips and tricks on how to improve your score. And the best bit? It’s completely free!

As you can see, your credit report is indeed very important, especially if you’ve got plans in the future to buy your own home. Remember that not having any history can be as bad as having a bad credit report, so begin building yours today!

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