Running your own credit check

by Darwin on August 31, 2014

Every time you apply for credit products, whether it be a loan, credit card, mortgage or something else, your potential lender will run a credit check. The credit check will form the basis of your credit score, which is a number between 0 – 999 (the higher the better) that shows how well you have managed your credit in the past and predicts the likelihood of being accepted for further credit. It allows the lender to make a decision about whether or not to accept your application and it also helps the lender to determine which rate of interest you would be most eligible for.

The credit check will include the following information:

  • Your payment history – late or missed payments will raise a flag.
  • Your outstanding credit.
  • Your available credit.
  • Bankruptcies and court judgements.
  • Recent credit applications.
  • Your financial associates – such as people you share financial accounts with.

Making sure your credit check is accurate

To be in with the best chance of being accepted for credit you will want to have a good credit history and a high credit score. Not only are potential lenders interested in your credit check, but your new employer may want to run a credit check on you, especially if you are taking a job in the financial industry. By knowing what already appears on your credit check, you can explain any anomalies that may put off potential employers.

The first thing you should do is to run your own credit check. To run your own credit check, click here. Once you have your credit check, you will be able to see what lenders see, and correct and mistakes that appear. Mistakes may be incorrect address used, an incorrect payment history a wrong financial association or credit accounts that are not your own, amongst other things.

Improving your credit score

There are many reasons for having a low credit score, whether it be a few missed payments or perhaps very little credit history. Once you have checked that your credit check is accurate, you can then look at different ways of improving your credit score. There are a few simple ways to improve what appears on your credit check:

  1. Remove anyone you are no longer financially associated with.
  2. Be sure to at least make the minimum payments due.
  3. Ensure that payments are made by the due date.
  4. Close credit accounts that you have paid off and no longer require.
  5. Space out your future credit applications.

Once you have knowledge of what appears on your credit check, you will find that you are in a much better position to make financial decisions, and apply for products that suit your circumstances.

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