4 Reasons to Get a Credit Check

Secretly, as we all know, information is being held about us. Where we shop, what we buy ... what we owe.

Every time you borrow on credit cards or take out loans, mortgages etc your secret files are consulted by credit agencies and they look to see if you are creditworthy.

What Do They Check in a Credit Check?

They will check if you have defaulted on a loan, been taken to court for non-payment, if you have county court judgements (CCJs) against you. They will check how much you earn too. They also check your address to see if anybody living in the house has a bad credit record.

Below are 4 reasons to get a credit check:

1) What If Your Credit File Is Wrong?

But, what if the records are wrong? People can make mistakes. Maybe there is something on your credit record that should not be there. But you can check the records for yourself. You can get a free credit report and check that your record is clean.

2) You've Moved House

Maybe the house you moved into in the last 2-3 years was occupied by somebody who had the bailiffs round. Their bad debt might be showing against your current address.

3) Identity Theft Worries?

There's so much on the news these days, it's worth getting a credit check in case somebody has stolen your identity. If you've had your identity stolen you NEED to get credit checked straight away to sort out any problems they may have caused.

4) Plain Old Fashioned Curiosity

I am afraid this one gets me every time... just plain old fashioned curiosity. If you've no reason to get your credit checked, then there's no reason to let that stop you.

The top four most common reasons people get a credit check done are:

1. Buying a House: When you want to buy a house, car, holiday, house extension or something major, you'll need to borrow money. Your ability to borrow will be based on your credit check - this is the main reason people get their credit checked, so they aren't refused credit when they come round to applying.for a mortgage or a loan.
2. Credit Refused: The second most common reason is for those people that didn't get their credit checked before they applied for a loan - only to find out they had credit refused, so now they're checking their credit to find out why it was refused - to look at what their credit file says about them. Once you know what is on there you can correct it or clear it up.
3. ID Theft: The next most common reason is that people suspect they might have had their ID stolen and used fraudulently. ID fraud is a growing problem, which is why an increasing number of people are checking their credit file for this. Some people will just check annually, others will suddenly find they're receiving calls from debt collectors saying they owe money they know nothing about.
4. To Get Financially Straight: The fourth most common reason people get a credit check done is to get themselves financially straight after knowing they've had their head stuck in the sand for awhile and now want to get a grip on their finances once and for all. It might be a threat of redundancy that makes them take stock, or it might be that they plan to buy a house in 1-2 years' time, but the starting point to getting financially straight is to just check what is held on your credit file against you.

When you borrow money it is because you need it NOW. We don't borrow money then sit on it for a year. It's always required quickly. If you wait until you try to borrow to find out there's a problem, then clearing your name might take you time you just don't have. So if you think that you will be wanting a new credit card, a new car, a loan, to borrow for a holiday or loans for home improvements, then get a free credit check now.

Get Your Credit Rating Fixed

You can clean up your credit report whether it is wrong or right. Maybe the black marks on your credit history should not be showing any more as you paid your debts off. Or maybe there is a mistake. Once you know what's on your credit record, you can get it changed/amended or fixed.

Photos by:

Credit cards: Wikimedia Commons
Tick: Wikimedia Commons