When you enter into the credit world, you then begin to have a credit report, or credit history. This credit report is a data base of your comings and going credit wise, and how you pay your accounts. Your credit file and credit score, which is a given numerical score to provide lenders and banks an idea of how likely you are to repay a loan.
There are ways to improve your credit score, but how do credit scores and credit reports even begin, how is their very being started??
In The Beginning….There Were Credit Bureaus
Your credit file, credit history, or credit report, is to be made up of factual accurate information on how you pay your accounts. So data bases were created to collect this information.
There are three major credit bureaus or data bases to collect credit information in the UK:
Transunion, formally Call Credit
Each of these credit bureaus or databases can score you from the low hundreds, which is a poor credit score, to some score as high as 999.
For some credit bureaus 700 is an excellent score, for some in the 900’s.
The information these credit bureaus collect, is from your creditors, or those that report to the credit bureaus. Not all credit institutions report to all three (3) credit bureaus, and some do not report to any credit bureaus.
It All Comes Down To The Lender/Bank/Who Reports Your Accounts
Stating that your credit file has to be an accurate picture of how you have paid your accounts is easy to say and write…but much harder to do or enforce.
Garbage in….garbage out.
If a lender reports something that is in error, it goes on your credit file. Credit bureaus have no way to separate the wheat from the chaff, or in this instance, what is correct and what is not correct.
If a lender states you missed a payment, and reports it as such, it goes on your credit file.
And as mentioned, not all creditors report to the credit bureaus. Some small lenders may not report to the credit bureaus, and you may have perfect credit with that lender.
So what to do??
Review Your Credit Report
Review your credit history on a regular basis for errors and omissions. And you can correct any errors via the credit bureaus themselves, or contact the creditor directly to have the error corrected.
You can inquire with your landlord about the Rental Exchange to add to your credit score, showing you pay your rent on time.
You can also look at Experian Boost as a way to increase your credit score.
And lastly, if a creditor has reported something on your credit file, you can leave a notice explaining that this is in error.