Understanding the Three Main Credit Reference Agencies

There are three main credit reference agencies in the UK—Equifax, Experian, and Callcredit. It is important that you learn about each one. These agencies play an important role in the state of your credit, so you need to know as much about them as possible. Your credit has a big impact on your ability to get a loan and other essential things in life. The more you find out about these agencies, the more prepared you will be to get new lines of credit.

How does a CRA Work?

A credit reference agency receives information from creditors like late payments and non-payment of bills. This information goes on your credit reports. You have a different credit report for each agency. There is other information on your report as well, including your home address and electoral roll details. Your credit score is a result of all this information put together.

Checking Your Credit Report

It is highly recommended that you make a point of checking your credit report at least once per year. You should get a copy of your report from all three of the major credit reference agencies.

You have the following options with each agency:

  • Equifax: You will be able to check your report with this agency with ClearScore, which is completely free. This agency also has a Credit Report and Score service that you can get for £7.95 per month. You can do a 30-day trial to test it out first. This is a good choice for those who need to check their credit reports and scores often.
  • Experian: This credit reference agency also allows you to get a copy of your credit report and score for free. You have to sign up, but it doesn’t cost anything. It is important to keep in mind that you won’t have access to your report. The CreditExpert service provides you with full access to your credit report and score for £14.99 per month. MSE’s Credit Club gives you the same thing but for free.
  • Callcredit: You can use the Noodle service to get a free copy of your credit report as well as your score. TotallyMoney is another free service that allows you to see all of your data with this CRA. The CheckMyFile service gives you this comprehensive Callcredit and Equifax details on your credit for £14.99 per month.

Information that CRAs Collect

You also need to know what information each of the three credit reference agencies in the UK collect on you.

This information includes:

  • Personal details: When you take a look at your credit report, you will see certain personal details like your full name, physical address, date of birth, and all of the addresses you have ever lived at.
  • Financial associations: This information relates to any loans you might have ever taken out. It plays an important part in lenders determining your credit worthiness.
  • Inquiries: When you submit an application for a loan, the “hard inquiries” will show up on your credit report. This is why you should avoid submitting a lot of loan applications in a very short period of time.
  • Other details: Any civil judgments against you or bankruptcies will also appear on your credit report. Instances of fraud may also be visible to lenders who take a look at your report when determining whether or not to give you a loan.

Tips for Checking Your Credit Report

It is absolutely crucial that you are very careful when it comes to checking your credit reports with each agency. You should only use websites and services that are 100% legitimate. There are some shady websites out there that you need to avoid. Use the information above to know where to go when you want to check your reports and scores with each CRA.

Looking for Errors on Your Credit Report

Sometimes credit reporting agencies make mistakes and put incorrect information on people’s credit reports. There is also a chance that there are items on your report that should no longer be there. This is why it is such a good idea to check your report thoroughly on an annual basis. If you ever discover any items that look suspicious, you need to contact the CRA right away.

Final Thoughts

Credit reference agencies are only the middle man when it comes to the overall state of your credit. They take in reports from your creditors and add them to your report, which affects your overall score. You need to keep in mind that nobody has a single credit score, as there are three different agencies. Your credit score is constantly changing in small or big ways due to a number of factors. It is important that you monitor your credit report for these changes.

Using a Payday Loan to Consolidate Your Debt

If you have a significant amount of debt that you want to consolidate, a payday loan could hold the key to your problem. Each year thousands of people in the UK consolidate their debts to make them more manageable, and it’s an option to consider. In this article you will learn everything you need to know about using a payday loan to your advantage. These loans have grown very popular recently for many different reasons.

What is Debt Consolidation?

Debt consolidation involves turning all of your individual debts into one loan that you will pay off on a monthly basis. The lender that you borrow from assumes all of your debt and you pay them back with regular instalments. This can make paying off all the money you owe much easier. If you want to get out from under your debt once and for all, this can be an effective solution. You will first have to find a lender who can give you one of these loans, and there are many options to choose from.

Finding a Payday Lender

One of the most important parts of getting a payday loan for debt consolidation involves finding a trustworthy lender. While it is true that most of these private lenders are highly reputable, you still have to do your research. When you are looking for the right payday lender, you need to find out what others have to say about each one. It is a good idea to read reviews for various lenders so you can choose one that you are confident in.

It is also crucial that you speak with each lender one-on-one to find out what kinds of terms you can expect. Do they charge a fee for early repayment? Can you get an extension on your loan if necessary? These are just a couple of the questions that you should be asking when speaking with these lenders before making a decision.

Payback Period

The amount of time that you will have to pay back your debt consolidation payday loan depends on the amount of money you borrow. Payday loans are typically for smaller amounts, but some lenders give out more than others. The payback period can range from two weeks to around three months. It is pretty rare to get more than a few months to pay back the entirety of your loan. This is typically something that you can (and should) negotiate with the lender before settling on the terms.

Benefits of Payday Debt Consolidation Loan

There are lots of benefits associated with getting a payday loan for debt consolidation, including:

  • Save money: Depending on what kind of interest rate you get on your new loan, you could end up saving quite a bit of money. Your rate plays a big part in how easily you are able to pay back your loan.
  • Increase your credit score: If you pay off your debt consolidation loan on time without any issues, your credit score will go up. This will look really good on your credit report, which will serve you well when trying to get other loans in the future.
  • Stop collection calls: Another good reason to consider this option is that you will finally put a stop to annoying calls from your creditors.
  • End date: When you have a debt consolidation loan, you will essentially get an end date for all of your debt. This can really help if you have become depressed because you aren’t sure when you will regain your financial freedom.

Remember to Negotiate

There is typically quite a bit of room for negotiation with a debt consolidation loan, so you need to keep that in mind. You should always try to get the best possible terms from your lender. Most lenders expect a certain amount of negotiating. If you just accept the first set of terms proposed by the lender, you will regret it later on. Try to see if you can get a longer amount of time to pay off your debt, and maybe a lower interest rate. If you have chosen a flexible lender, they will likely be willing to work with you on these things.

Should I get a Debt Consolidation Payday Loan?

Debt consolidation is definitely not for everyone, so you need to remember that before making a final decision. First you have to consider how much debt you have. If you owe any less than £500, you might want to consider not doing this. Those who have a more significant amount of debt can most likely benefit from getting one of these loans. You can apply online, and it only takes a matter of minutes. If you are approved, you could get your loan within a period of 24 hours.