Are you guilty of the Credit Report Seven Deadly Sins?
By: James Jones, Credit Expert
30 Nov 2009 Tell a Friend
Five years ago, most people's attitude to their credit status was, "It must be OK - I'm always being offered cards and loans." Today, things couldn't be more different. Banks facing the combined effects of the credit crash and recession have tightened their lending criteria so that only the cleanest credit report will qualify you to borrow what you need.
A clean credit report is a golden asset but very few of us realise that we could inadvertently be trashing our credit status - and our chances of getting the deals we want. Below are some surprising ways in which you can damage your credit rating - and a guide to how not to fall into the traps.
Deadly Sin no.1: Not knowing what affects your credit status
Lenders use a wide range of data when they decide whether to make you an offer, including details of your salary and how many people you support financially. They turn to your credit report to assess whether you are stable and a reliable borrower.
Your credit report lists your credit, such as cards, loans and your mortgage, along with your repayment record. You need to check it regularly to ensure that it's up to date and accurately reflects your circumstances. It's free to see your Experian credit report with a 30-day trial of CreditExpert.
Look for:
* Minor clerical errors, such as an outstanding balance you know you paid.
* Inconsistencies in the way your address is listed - for example, Basement Flat, Flat B and Flat 4.
* Applications and accounts you don't recognise.
If you find anything you disagree with, take it up with the relevant lender and ask for it to be correct - be ready to provide proof.
Deadly Sin no. 2: Not being credit-wise when moving home
You may think that a move is something to celebrate - but your big move is fraught with dangers for your credit record.
Remember to:
* Make any big credit applications before you move - lenders prefer you to have lived at the address you give for at least three years and you could lose valuable points from your credit score if you leave things until after you've settled in your new home.
* Cancel gas, electricity, phone and cable contracts in writing, at the same time that you tell your bank, building society and other key organisations that you've moved. If you forget, the people who move in could run up bills in your name.