The importance of credit scores

Posted by Kelly Luff in Credit Score on 20 May 2015 - Kelly is a Marketing Executive at checkmyfile

If you have ever applied for credit and been turned down you may have checked your credit score. However, most people do not realise that you are often credit checked for all types of borrowing and not just the likes of credit cards, loans and mortgages.

Research from Aqua credit cards found that 25% of those surveyed would not think that they’d be credit checked for opening a bank account, and 83% didn’t think that a low credit score could affect their access to the best utility deals. 75% also didn’t know that a low score could stop them from being accepted when signing up to direct debits.

We are in the business of providing credit reports and scores to our customers, so everyone that works here is well aware of the importance of ensuring that your credit score is in the best possible shape. However, 79% of those surveyed had no idea what their credit score was and 53% didn’t know what steps to take if they needed to improve it.

If you aren’t sure what shape your credit report in it’s worth checking using our 30 day free trial. And if you’ve been declined for credit it’s important to check that everything is correct on your credit report – if there is anything on there that could be impacting on your ability to get the credit you’ve applied for it is important to be aware of it and dispute it if needed. In Aqua’s survey 85% don’t even bother to find out why they’ve been declined, which could potentially let the problem continue to affect you.

If your credit score isn’t good and is impacting on the credit you can get, it can have a lasting effect on your finances. According to the research, a less than average credit score could cost an average household an extra £1,170. So check your credit report now to ensure that you will get the best deals available to you.

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