How To Check Your Credit Record?  Explain It   

Do you want to have an overview of your financial history? Your credit record can let you have a glimpse of your credit scores. This unveils the amount of cash you have borrowed and the status of their repayments.

When you apply for a loan, the loan provider will fetch a copy of your credit report. They analyse this information to understand the extent of risk. As it establishes how well or badly you have handled previous payouts, it decides whether lending money to you is risky or not.

Therefore, analysing the credit record is necessary when you have to borrow money or get a credit card. The process is fuss-free and does not need you to pay any charges at all. Despite this, many of you still like to stay ignorant about your credit scores.

Review the credit record from time to time to make sure your scores are in the best shape when applying for external funds. This will downsize the chances of facing a denial from the potential lender. Now, you might want to question the ways you must check your credit record.

This blog is going to cover this topic. Thus, you better stay there and keep reading.

Essential pointers related to checking your credit record

Credit scores are numerical representations of your performance in handling past payments. Thus, they are used by lenders for reference to understand whether you are a responsible borrower or not. These scores are decided and added to your credit report based on your financial performance.

1.  What is the role of a credit report?

This document holds detailed information about your borrowing history. This information is about how your credit score is managed by the Central Credit Register, i.e., CCR. In Ireland, no credit scoring system is followed, which you used to see in the case of other countries.

Here, CCR will showcase fact-based details related to credit history. They do not decide whether or not you are compatible to get a loan. A loan provider will be looking into this information to understand your eligibility.

This might not be the only criterion to make a decision about loan approval. The lenders might enquire about your income, expenses, and the status of debts.

2.  What are the factors that can influence your credit scores?

When you credit scores are favourable, they are a perfect borrower according to lenders. This is because you have a track record of payments made on time. This time also, they expect you to repay loans within the specified duration.

The various aspects that can affect your credit scores should be known to you.

• Your personal information, i.e., your name, date of birth, PPS number, address, etc.
• Information about any loan amounting to at least € 500 or more with details about the lender, status of repayments, or missed payments
• Outstanding balance (if any), including your repayment history
• Your loan application record, especially for loans you have taken out as € 2000 or more
• Details about loans for which you have become the guarantor

Thus, by taking a glimpse of your credit scores, one will get to see a summary of how you have handled credits so far. If you have done a good job, you will have good scores, and vice versa.

Your credit report will also contain information on the loan agreements you have been associated with. Interestingly, it will also enclose details about footprints left by individuals or loan companies who have fetched information about your credit history.

3.  Are there ways your credit scores can get better?

Yes, you can improve your credit rating at any point once you realise they are not perfect. In fact, it is crucial that you take action to enhance your credit scores. Otherwise, if you leave them as they are, you will not be able to embrace future opportunities.

The steps you can follow to understand what is not right and what can be done are as follows.

4.  Obtain and analyse your credit scores

Why would you fetch credit records when you know your scores are bad? Maybe a lender has rejected your loan application, and from there, you figured out this fact. However, you still do not know the reason behind your poor scores.

For this reason, a full scanning of your credit report by you is necessary. Do this so that you can point out the root cause for low credit scores.

5.  Pay off pending bills

Usually, unpaid dues are one of the biggest culprits causing you low credit scores. Once you go through your credit report, you can figure out the status of pending bills. The next step will be to try ways to collect money and pay them off as early as possible.

There is no point in keeping these bills unattended as they will attract more charges. The speedier you can get rid of them, the better it will be for you. This will prevent your credit scores from suffering any further and will help them to improve.

6.  Do not apply for loans frequently

Seeing profitable offers, you might feel like applying for all of them. However, in this regard, you must not forget how hard inquiries on your credit profile can prove to be disastrous. More applications would mean more inquiries and more imprints on your credit report.

7.  Use credit card sensibly

Keeping the credit utilisation ratio low will be good for your credit scores. For this, you must practice the sensible use of your credit cards. Swipe it only when you know you will benefit and avoid irresponsible use for every other purchase.

8.  Get financial help

Financing options like loans for bad credit in Ireland can be obtained despite poor scores. They bring along feasible terms for repayment which will be a blessing for you. With planning, you can pay back loans easily and on time to benefit from favourable credit scores.

The bottom line

Wise use of external funding solutions like loans, credit cards, etc., can help you maintain favourable credit scores. This is also very important as you can maintain a safe distance from poor credit history.

Keep this step in mind apart from reviewing your credit record from time to time. Build productive financial habits.