How to Examine My Credit Report For Negatives?

The impact of a negative credit score is far-reaching than you can ever imagine. It can hold you back from taking a loan for any purpose like purchasing a car or house, borrowing during emergency situations, etc. Your credit report shows how efficient you are in terms of borrowing money and credit management. It is like your CV which gets updated on your behalf.

The information provided in your credit report reveals your past borrowings behavior and if it is not good then it can be quite difficult to change it. If you find that something has been entered in your credit report mistakenly, it is possible to get it rectified.

As far as taking a loan during an emergency financial situation is concerned, you have options to consider. Despite a negative credit report, you can take instant payday loans borrowers. There are many direct lenders in the UK loan market who offer this type of loans albeit at a higher rate of interest. 

Impact of a Negative Credit Score

Negative information in the form of late repayment, defaults, etc tells the lenders that you have had the difficulties in the past in managing your credits. Some negative information has more damaging powers than others like a CCJ and every lender have their own set of conditions regarding credit reports.

So, it is not easy to say how your credit report impacts your borrowing capability as it varies from lender to lender.

Difficulty in Removing Negative Spots from Your Credit Report

All the data related to a credit report in the UK is based on the system of principles of reciprocity. It is a framework for the recording, supply, and access to credit information via the Credit Reference Agencies of the UK. The main target is to promote responsible lending. Through this system, lenders share credit record data with each other. And only those lending agencies are able to access it who are willing to share their data.

Also, lenders have to make sure that the data they receive through a credit reference agency is accurate. Unless you have lodged a complaint of error in your credit record, there is very less chance of getting it changed.

Is it Possible to Get Rid of Negative Spots on Your Credit Report?

The only ground of removal of negative information from your credit report is if it is incorrect. While this scenario is very rare but mistakes do happen- and when it is about negative information such as late repayments, it could potentially harm a person’s ability to take a loan, hence it becomes paramount to rectify it.

Sometimes the errors occur in the form of spelling mistakes in names or address. But in the worst case, you can have negative payment information on your report which was not supposed to be on your credit report at all. Credit Reference Agencies and lenders are very quick in rectifying those errors if you provide them sufficient proofs.

Removing Negatives

If you find that there is some inaccurate information on your credit report then you can use the following steps:

  • Collect Supporting Evidence: If you have any document related to any loan agreement that shows you have paid the full amount on time or have been making repayment on time then it can be very helpful in supporting your claim.
  • Contact the Lender: Even though you don’t have any proof supporting your claim, your next step should be to approach the lender, explain to them what is wrong in your credit report and ask them to correct it. It might take some time but once rectified it will not have any negative bearing on your credit report.
  • Contact the Credit Reference Agency: If lenders are unable to correct your information on your report then the Credit Reference Agency where all the information gets reported is your next destination. You can file a Notice of Dispute which will force the lender to look again and confirm the same to the Agency that the information is correct. The information will be updated accordingly.

With time everything gets better and it is true even with a bad credit score. As the negative information on your credit report becomes old, its impact on your credit affordability decreases. You may become eligible to get bad credit loans and credit cards etc. But the terms and condition might not be the same. You might have to pay a higher rate of interest. If you repay the loan on time then you can improve your credit score which will help you in the future.

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