If you're aiming to improve or maintain a healthy credit score, or if you're hoping to secure the best deals when applying for credit, it is crucial to monitor your credit report regularly. Lenders use the information in your credit file to assess whether you are fit to take out credit with them. Any errors in your report could raise doubts and prevent lenders from offering you credit, potentially harming your credit score. By checking your credit report, you can spot errors early and prevent them from becoming bigger issues.
What to Look For in Your Credit Report
Simply checking your credit report isn’t enough if you don’t know what to look for. Occasionally, credit reports may contain "mixed files," where information from someone with a similar name gets mixed with yours. It’s important to ensure the details in your report actually belong to you. Here's a breakdown of the main things to check:
Make sure your full name, date of birth, and current address are accurate. Being listed on the electoral roll is an easy way to confirm your address and help lenders verify your identity.
Linked addresses are listed on your report when a lender adds an address related to credit taken out with them, typically one you’ve lived at in the past. Check that all addresses linked to your report are correct
Look for any credit searches made on your file. These occur when a lender checks your credit report as part of a credit application. If you notice searches you weren’t expecting or didn't agree to, it could be a sign of someone trying to open credit in your name (see below for fraud). It’s also important to understand the difference between soft and hard credit searches.
Soft searches, like those made when checking your eligibility for a credit card, don’t affect your score and are usually harmless.
Hard searches, however, happen when you officially apply for credit. They do impact your credit score and are visible to other lenders, so it’s essential to monitor them regularly. Too many hard searches in a short time can make lenders think you're over-relying on credit, which might affect your chances of approval.
Your credit report is a valuable tool for detecting fraudulent activity. If you spot credit accounts that you didn’t open, it’s important to address them immediately by raising a dispute with the lender or provider.
How to Check Your Credit Report
Make sure you keep checking your credit report with Credit Engine. It’s quick, and easy! You also have access to your daily credit score, updated every time you log in. Plus, you will also get alerts if anything on your report is updated, making it even easier to stay on top of your credit report.