Understanding your Credit Report and tips for keeping it healthy
Understanding your Credit Report and tips for keeping it healthy
As a mortgage advisory service, we know that understanding credit reports and maintaining a healthy credit score can greatly impact your ability to secure a mortgage. Your credit score is a reflection of your financial responsibilities and habits, and therefore it is crucial to take the necessary steps to keep it healthy. In this blog, we will break down credit reports and provide tips for maintaining a healthy score.
What is a Credit Report?
A credit report is a detailed summary of your credit history. It includes information about your current and past credit accounts, such as credit cards, loans, and mortgages. Credit reports also reveal your payment history and any outstanding balances. In addition, credit reports show a record of any previous adverse history such as defaults, CCJ's or bankruptcies. Your credit report is used by lenders to evaluate your creditworthiness when you are applying for a loan, credit or a mortgage.
How to Get Your Credit Report?
Click the link below to access your free credit report from Checkmyfile.com. This will provide you with information from your experian, equifax and transunion reports.
Download your FREE Credit Report HERE
Tips for Maintaining a Healthy Credit Score
1. Pay bills on time
Payment history is the most crucial factor in calculating your credit score. Keep up with payments on credit cards, loans, and utility bills on time.
2. Keep your credit utilisation low
Your credit utilisation is your outstanding balance on credit accounts relative to your credit limit. Keeping your credit use below 30% can positively impact your credit score.
3. Monitor your credit report
Look for errors or inaccuracies on your credit report. If you notice any mistakes, dispute them with the credit reporting agency.
4. Maintain a long credit history
Having a long credit history demonstrates you are a responsible borrower. If you have a credit card you no longer use, instead of closing the account, consider leaving it open.
5. Limit credit applications
Multiple credit applications in a short period can negatively impact your credit score because it implies you are in financial trouble. Make sure only to apply for credit when necessary.
In conclusion, understanding your credit report and keeping it healthy is essential in securing a mortgage. Pay bills on time, keep your credit utilisation low, monitor your credit report, maintain a long credit history, and limit credit applications are all valuable tips for maintaining a healthy credit score. As a mortgage advisory service, we are here to help you along the path to homeownership. Contact us today to learn more about securing a mortgage.
Fast Track House,
Thornaby,
Stockton-on-Tees
TS17 6PT
Unicorn Commercial Finance is a trading name of Unicorn Commercial Broker Limited
Co reg no: 11842350. Unicorn Commercial Broker Limited is a subsidiary of Unicorn Financial Services Limited 14244108. Registered address: 46b Hartburn Village, Stockton on Tees, TS18 5DS
Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement