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Credit reports are maintained by three reporting agencies: Experian, TransUnion and Equifax. Lenders use credit reports to investigate a person's financial background and history. It's important to stay current with your credit report to track any potential inaccuracies and remain aware of your credit profile. It’s vital to be aware of your credit profile and to know how to check your credit score if you apply for a loan or rent an apartment.
- Buying a house: When buying a house or applying for a mortgage, the FICO score along with a credit report will impact the borrower’s interest rate. Typically, a higher FICO credit score leads to a lower mortgage loan interest rate.
- Leasing a car: Leasing a car also requires that the customer has a good credit report and is likely to fulfill the commitment to make the lease payments.
- Applying for a loan: Loans, whether they are student loans, personal loans or other types, require access to the borrower’s credit report.
Some credit reports are free while other firms charge a fee for credit report access. The government’s site AnnualCreditReport.com gives all citizens free access to one credit report from each credit bureau annually.
- One-time report: Many credit monitoring companies offer one free credit report every year to consumers. There is typically a fee for more frequent credit report access.
- Credit card required: Some, although not all, credit report companies require a credit card number for the free trial and will charge a one-time or monthly fee for their credit services when the free trial period is over.
- Recurring charges: Some credit report sites offer credit monitoring and additional credit-related programs and services for a recurring monthly fee.
Some credit report sites offer assistance disputing credit reporting errors or guidance after identity theft.
- Missed payments: Missed payments reported in error can have a negative effect on a credit report. Some credit bureaus help consumers file a dispute.
- Fraud: Credit reporting companies can help consumers monitor their credit and resolve fraudulent charges on their accounts.
- General errors: It's possible to find general errors on a credit report that can lower one’s credit score. Consumers can enlist the credit reporting companies to investigate the errors.
Identity theft is a serious issue that can be detrimental to one’s credit. Many credit reporting companies offer credit monitoring with fraud alert services to quickly inform consumers of potential threats to their credit profile.
- Fee: Depending on the credit report company, there may be an additional fee for the fraud alert, or it may be included in a credit management package.
- Unusual charges: Some credit monitoring services will alert consumers if an out-of-character charge appears on their account.
- Account freezing: Some credit report companies assist consumers in freezing their credit at the credit bureaus. This prevents unknown individuals from opening accounts in the customer’s name.
Single bureau
A single-bureau credit report provides information from one of the three major credit bureaus. Consumers should be aware that the three credit bureaus don’t always have the same credit information. One bureau might include different portions of a consumer’s credit history than another.
Triple bureau
A three bureau online credit report provides credit reports from all bureaus. This allows consumers to see everything that is reported about their credit and financial history. Viewing all three credit reports from each reporting agency offers the most complete picture of a consumer's credit history.
Identity theft prevention
Some companies specialize in helping consumers protect their identity from being stolen in addition to providing credit reports. Identity theft specialists also assist consumers after their identity has been compromised.
Credit score sites
Various businesses provide a credit score that helps consumers understand how a lender will view their credit-worthiness. Other credit score sites also provide credit reports.
Source: ConsumerAffairs.com
https://www.consumeraffairs.com/online/credit-report/
Each lender has their own algorithm to calculate a score, unique to them, based on numerous factors taken from the credit file, what they already know, what you tell them and public & fraud records (ie CCJ / CIFAS etc).
Lenders in the UK see aggregated raw data feeds, so if they search Experian; they'll get a report showing various points as per their scorecard model - they're set different for each lender. An example feed would look like -
Credit Accounts: 12
Total Balance: £5000
% of Credit Utilisation Used: 25%
Payment history: 0-3 {0}, 3-6 {1} etc
Length Oldest Account: 9yrs 5mth
Months since late payment: 0
Total Credit Available: £20000
You get the idea. But the feed is based around the scoring model of that lender.
Basically, we only need to ensure that we don't have late payment markers against us, in order to be classed as a reasonable risk. If you've a long-time account and a high limit then you're likely be a better risk, so will get offered better deals.
It's all relative to income -> total available credit -> outstanding debt -> debt ratio %.