Checking one’s credit score is essential for understanding financial health, as it influences the ability to secure loans, mortgages, or even certain job positions. In the UK, there are specific steps and agencies that can help individuals review their credit scores. Here’s how you can do it:
1. Understand what a credit score is
Before checking it, understand what a credit score is. It’s a numerical representation of your creditworthiness, based on your financial history. Lenders use it to evaluate the risk of lending money or giving credit. The higher your score, the better your financial trustworthiness.
💡 You might like this guide: How are credit scores calculated?
2. Know where to check
In the UK, there are three main credit reference agencies (CRAs): Experian, Equifax, and TransUnion (formerly known as Callcredit). These agencies collect information on your borrowing and payment habits to generate a credit report.
3. Use the statutory report
By law, each of these agencies must provide you with a statutory credit report for a small fee. This is a one-off snapshot of your credit file at the time of request.
4. Sign up for free services
Several online platforms, such as ClearScore (using data from Equifax) and Credit Karma (using data from TransUnion), offer free access to your credit score. Additionally, Experian’s free membership provides access to your Experian credit score. These platforms not only display your score but often give insights into factors affecting it and how you might improve.
5. Check regularly, but not obsessively
While it’s a good idea to monitor your credit score, especially if you’re planning significant financial moves like getting a mortgage, you don’t need to check daily. Quarterly or twice a year should be sufficient unless you suspect fraudulent activity.
6. Understand your report
Once you access your report, it will have various sections, including personal details, credit history, and any financial connections (like joint accounts with someone). Ensure that all details are accurate, as mistakes can negatively impact your score.
7. Dispute any errors
If you find inaccuracies in your report, you have the right to dispute them. Contact the CRA directly and provide evidence supporting your claim. They typically have 28 days to respond.
8. Protect your score
While checking your score, it’s equally important to maintain or improve it. Always pay your debts on time, try not to use more than 75% of your available credit limit, and avoid applying for credit frequently in short spans.
💡 Read more on how to improve your credit score here.
Remember, having a good credit score is beneficial, but occasional dips due to unforeseen circumstances are normal. It’s crucial to keep an eye on it and take steps to ensure its accuracy and health.
