Your credit rating (credit score), is what potential lenders will look at when you apply for credit. Your rating is calculated based on your financial history displayed on your credit report.

By checking your credit rating you’ll be able to gain a better understanding of what financial information is stored on your credit report, and in turn knowing your current credit rating can help you to better manage your finances by knowing what forms of credit are currently available to you.

When you request a copy of your credit file (known as a credit report), you will receive a snapshot of all your outstanding credit and its history. Financial information on your your bank account, credit cards, mobile phone, electricity bill, and even shopping catalogues will all be listed in the report. The credit report file will enable you to see at a glance just how much credit you currently have, and how much you currently owe.

If you have a poor credit history, or are concerned about your credit history impacting on future credit applications, then it is a good idea to get to know your credit report and its history a little better. By looking over your report you will be able to highlight any problem areas, and begin to improve your credit rating by taking care of any troublesome details.

If you happen to spot any mistakes whilst looking through your credit report then it is possible to correct them by contacting the lender in question. By adding a ‘note of explanation’ to your report you can explain any circumstances that may have caused credit problems. For example if you failed to make loan repayments due to illness.

It is also recommended by the Home Office that you regularly check your credit report to help protect yourself against identity fraud. By checking your report at regular intervals you will be in a much better position to spot any unusual or suspicious credit applications or accounts and give you the ability to contact the relevant lenders and authorities before too much damage is done.