How can your credit report be used?

02/05/2023

Admin

It’s normally not until you need credit that you start to think about your credit report and score. Most of us may have never even looked at our credit report before we had a mortgage or were thinking of applying for one! However, now more than ever, companies such as credit providers, insurance providers, employers and even letting agents are asking for a copy of your credit report the same way they ask for a copy of your I.D.

But why when you go for a job interview or to rent a house does a company or letting agent need to see your credit report? The main reasons would include, simply checking you are who you say you are! They would also be able to see if you have a record of responsible financial management – especially if this is an important factor in the role you have applied for. It also quickly allows a future employer to see if you are under significant financial strain – for example if you have a large amount of debt to pay off – that could affect your performance at work.

However, you should remember what information your employer can actually see is limited;

– An employer will not be able to see the details of your credit agreements, only if there are any serious problems.

– The report will show whether you have been declared bankrupt in the previous six years or had any County Court Judgements (CCJs) made against you in that period.

But is your employer allowed to check your credit report? The simple answer is yes, but (and its a big ‘but’), an organisation can usually only check your credit report with your permission, therefore as part of the recruitment process, you may be asked to give your consent to a check being made, and you can of course refuse

This leads me onto another instance where you may be requested to show or produce your credit report apart from that of a mortgage or other credit application. When renting a house it has been noted that many renters are now being asked to show their credit report, again this is due to similar reasons as to why a potential employer may want to see your credit report as it will essentially show your potential landlord (or the letting agency) how financially responsible you’ve been in the past and your payment history.

Lastly, by checking your credit report it may also help you to detect signs of identity theft and fraud. The first signs of this can be when attempts are being made to use your details to obtain a new form or credit, and as your credit report shows any hard searches made by lenders you can spot any applications that have been made that you do not recognise. Something as simple and quick as checking your credit report could help you to make sure your details are not being fraudulently used and make sure you act quickly if they are.

If you are a regular reader you will be aware we always make a point of mentioning that you should check your credit report to ensure that it is accurate, as mistakes could have a negative impact on you!

You can check your credit report within your customer dashboard if you have a ScoresMatter account and ensure everything is correct; such as your address is up to date, there is no borrowing you do not recognise etc. This ensures when and if your credit report is checked its accurate and true reflection of you!

On a side note, ScoresMatter does also help you to check your details are not on the dark web too! And this can be found in your customer dashboard.

I hope our blog has helped highlight the ways that your credit report can be used and how important it can be!

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