How Credit Reporting Agencies Work

Credit reporting agencies work with creditors on a subscription basis. For an annual fee, a creditor (lender) has access to the credit reporting agencies databases. This allows a creditor to both get credit information on you and also allows them to post credit status on any loans you have with them. Typical information on a credit report includes:

Bank credit cards
Retailer credit cards
Student loans
House loans
Other types of finance
Additionally, it is common to see the following information on your credit report if you are in default:

Utility bills (phone, electric, etc.)
Rent payments
Court judgments against you

Each persons credit information is stored, when you apply for finance the creditor requests the information on you to make a decision.

It is good practice is to get a copy of all your credit reports and examine them. If they have incorrect information on them, take steps immediately to get these items repaired or removed. A clean, positive credit report is a very valuable resource in your financial life. Protect it and keep it clean and it will serve it well when you most need it.

What Is A Good Credit Rating?

What Is A Credit Agency?

Should I Consider Going Bankrupt?

Do Multiple Loan Applications Have a Negative Impact?

What is My Credit Rating?

What Is A Good Credit Rating?

Usually a credit rating that signifies no significant late payments on any type of credit payments in prior 3 years. People with A+ credit typically can receive better rates on certain loans and mortgages. Mortgage lenders frequently give a rate concession to extremely credit-worthy borrowers. examples of A+ credit include a middle, or average credit score of 680 or better; in some cases a score of 720 is the cutoff for better rates.

What Is A Credit Agency??

A credit rating is a company that keep detailed records on all consumers in the UK, whenever you apply for credit, the company you are applying to will do a credit check to determine if you are a good risk to offer the finance, they come to this conclussion by searching your past records on how you have kept up finance, debt and bill payments in the past.

Should I Consider Going Bankrupt?

If you have considered filing a bankruptcy and feel that it is the only way out of your financial woes you may be making a huge mistake. Ask yourself this question. Do I have any real-estate or assets that would be protected by the filing of a bankruptcy? If the answer is yes then you should consider it. If you do not know the answer then you should talk to an attorney. But remember that they don`t know how the credit system works so anything they say credit related you should take with a grain of salt. If the lawyer says that you do have assets or property that would be protected that`s another matter. Keep in mind that bankruptcies are not reported to the credit bureaus by the federal court system. They are reported by the creditors involved in the case.

For the most part people file bankruptcy because they can`t take the pressure and harassment anymore and figure that they can get a secured card after if they need a credit card. The problem with bankruptcy is that unless you have property or assets to protect it is the equivalent of using a nuclear weapon to kill an ant.

If you are wondering whether or not a bankruptcy can be removed from a credit report the answer is yes. It doesn`t matter whether it was a chapter 7, 11, or 13. It does in some cases matter when it was filed with respect to the time it will take for you to remove it from your credit file. Don`t use bankruptcy just because you are under pressure. There are many other ways to deal with the pressure of phone calls and collector threats. In the SDCRC we show you how to stop them from calling and harassing you. We show you how to put them in a position where in many cases they can no longer pursue collection efforts. Do Late Debts Payments Stop You Getting Finance In The Future: Many people are under the impression that even though at some point they were late they brought the account current and that should make everything OK. In fact we find that when you ask people about this subject they say "yes, I had late payments but I took care of that my credit is fine". Your credit may have been adversely affected, you may think it is but I can assure you that the lenders of the UK won`t agree.

Late payments are interpreted by the lender as meaning that either you are lazy in paying your bills or not very good at managing your money. They will either charge you more in the way of down payments, interest and fees. You don`t want to leave these on your credit report. Even if the late payments were due to circumstances beyond your control the bureaus will leave them on your reports. Late payments are defined as payments that are "posted" after 30 days from the original due date.

What if your check really did get lost in the mail? What if you were the victim of crime and it just through you off for a couple of months? Should that be reported as if you were lazy? NO ain these instances contact the company who marked you late debt payment on your credit profile as they have the power to have this blemish removed.

Do Multiple Loan Applications Have a Negative Impact?

Many people are concerned about having too many inquiries on their credit report. This is not without cause as many applications are rejected because the applicant has too many inquiries. By general rule. Credit bureaus have told creditors that if a person has more than this on their report it usually means that they are bouncing around looking for credit which generally indicates that they are either desperate or careless. Of course they never consider that you may just be shopping!

A good rule of thumb is that if you are going to do the kind of shopping that requires filling out applications you should request copies of your credit reports from the credit bureaus first and then take them with you to the car dealer, mortgage broker, or finance person. Make them tell you whether or not based on the reports you are showing them you will be accepted or rejected. This avoids lots of inquiries gathering on your reports.

When you enquire online to First Choice Finance, we do not carry out a credit check before discussing the enquiry with you and only when we believe we can help will we carry out the credit check that the lender requires to proceed.

What is My Credit Rating?

Credit ratings - At a creditor`s request, a credit reporting agency will give a rating of how good a risk they feel a customer will he based on the customers payment history, etc. in the credit report.

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.