Do you remember your report card from school? The one you got at the end of the term, telling your parents how well or worse you did? The one you were terribly scared of? Of course, you do! You have had so many sleepless and anxious nights the day before the result! What if I tell you that report cards are not just for schools or colleges? What if they follow you right till you retire from work? Terrifying right? But that is how it is. From the academic report comes the credit report. It is a record of how well you are doing with your borrowings and repayments.
Understanding Your Credit Report
In layman terms, credit is what comes in: your income, returns or any kind of money that you receive. Your credit report is a reflection of your borrowing behavior. It shows how far deep you are in debt, how well you are doing with your repayments, how responsible you are in dealing with your finances, whether you have availed the best short term loans, how stable are your residential history and some other details. Based on all this data, your credit rating is processed, and a credit score is generated for every UK Citizen over 18 years of age. According to various credit rating systems, your score is then classified into excellent, good, bad or very bad.Details NOT included in Your Credit Report
The main thing to understand before moving ahead is that your credit score is related to your loans and debt. The factors that do not affect your repayment capacity and financial credibility are not considered during the preparation of your credit score. To be clear about the concept of credit report and rating, you should also know which details are not factored into your report. This is necessary so that you do not stay conscious about every step you take in life. The elements of your life that will not have any impact on your credit report are:- Your account balance
- Monthly Salary
- Status of Savings accounts
- Status of Current accounts
- Medical history and Bills
- Parking or driving fines
- Criminal record
- Highest Education
- Marital status, age, religion
- Beliefs
- Employment history
- Current Occupation
- Any Private loans
- Outdated public records
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