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Do you know your credit score? If you answered no, then it’s time to give yourself a serious financial education!

Many people don’t what their credit score is, or know what their credit report looks like – but if you ever plan to buy a house or car, it’s important to regularly check the status of your credit score.

Banks and lenders use their own criteria when they’re deciding whether to loan you money or not. However, they also take into consideration the information that is available to them credit reference agencies, so it’s important to keep your credit record in great shape.

To check your credit score, you can request a copy of your file from the following credit reference agencies. They will usually offer to provide you with a free credit score initially, but they will charge for regular updates or access to a more detailed report.

The primary credit agencies in the UK are:

Call Credit www.callcredit.co.uk Equifax www.equifax.co.uk Experian www.experian.co.uk Lenders refer to all three agencies when processing credit applications, so it’s worthwhile contacting each of them for your credit score.

The good news is that under the Data Protection Act, credit reference agencies are legally obliged to provide you with a Statutory Credit Report for a fixed fee of £2.

This statutory report contains information related to your basic credit file, and will be posted to you within seven days of requesting it. For a more detailed report or instant access, you’ll usually need to pay a higher fee.

If you receive your credit score and you’re concerned that your score is lower than expected, go through your credit report and analyse each of the entries. It may be the case that an illegitimate transaction is soiling your credit record, or you could be the victim of identity fraud.

If this is the case, you need to report the matter instantly to the financial institution involved. They will investigate the claim and if appropriate – in England, Wales and Northern Ireland – report cases of criminal activity to the police.

If your low credit score is the result of your own poor spending and saving habits, you should consider creating a budget and adjusting your financial behaviour. Your credit report is very valuable, and you need to be careful to protect it. If you have a poor, damaged or non-existent credit history, you may face challenges when you apply for a car or personal loan, and it can ultimately impact your ability to get a mortgage.

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