Your credit report is an indicator of your financial health. It sets out information about your borrowing, repayments, and even missed bills.
While your credit report doesn’t require daily monitoring, having an idea of what’s included in your report can help you avoid nasty surprises and give you an idea of how you’re handling money.
Why checking your credit report matters
When you apply for a loan, credit card, or even a new broadband contract, the company will do a credit search – or credit check – on you. This is where they look at your credit report to establish how you’ve handled credit in the past. By doing this, they decide how likely it is that you’ll pay them back.
If your report paints a picture of someone who misses payments or uses too much credit, you’re less likely to get approved or you might be offered worse terms. On the other hand, a strong report gives you access to better rates and more choice.
Therefore, it’s essential that your credit report is accurate and up to date. It’s important to note that checking your report doesn’t damage your credit score, and it’s much easier than most people think. You can do it from your phone or laptop in just a few minutes.
What’s included in a credit report?
The credit report includes your current and past credit accounts and repayment history. When you access your report, read through it carefully and double check the details:
- Personal information:This is information such as your name, addresses you’ve lived at, and other personal details.
- Credit accounts: Details for each of your credit accounts are listed in the report, including the name of the creditor, payments you’ve made, and the current balance.
- Hard credit checks:Hard credit checks are when a company makes a full search of your report. These types of checks happen when you make a full application for credit, such as when you apply for a credit card. They are recorded on your report, which means that if a company looks at it, the company will see that you’ve applied for credit.
If you have a few hard searches in a short time span, this can impact negatively on your credit score, meaning you might struggle to get credit later down the line.
- Soft credit checks: These happen when someone looks at a limited version of your credit history, often to assess your eligibility for certain products without making a full application. Lenders might use a soft search to decide whether to pre-approve you for an offer or to check if you meet the criteria for a loan, credit card, or rate. These checks also take place when an insurance company reviews your credit information, when an employer carries out background screening, or when a landlord wants to confirm you’re a reliable potential tenant.
While soft searches are recorded on your credit report, they’re only visible to you and others in the same sector – for example, an insurer can see soft searches made by other insurers. Importantly, soft checks don’t affect your credit score. Checking your own credit report also counts as a soft search.
- Public records:If you've filed for bankruptcy, you'll be able to find details about the public record.
Spotting errors and signs of fraud
Understanding what lenders see when they assess your application can help you spot areas to improve. For example, if your credit utilisation is high or if you’ve missed a payment recently, that could be dragging down your credit score. Being aware of this allows you to take action before applying for more credit.
However, credit reports aren’t always perfect. They’re updated regularly by banks, lenders, and utility providers, and sometimes they include mistakes. You might spot an unfamiliar account, an incorrect address, or a missed payment that you know you paid on time.
There can also be signs of identity fraud. If someone has applied for credit in your name, the application could appear on your report. Catching these red flags early is essential because fraud can damage your credit score and take time to resolve.
By checking your report regularly, you can act quickly if something looks off. Whether it’s a clerical error or a sign of something more serious, you can contact the credit reference agency to fix it.
How often should you check?
At a minimum, you should check your credit report once a year. But doing it more frequently can be helpful – especially if you’re planning a big financial decision like buying a home or applying for a personal loan.
Before any credit application, it’s wise to check that everything on your report is accurate and up to date. UK residents are entitled to one free statutory credit report per year from each of the three major credit reference agencies: Experian, Equifax, and TransUnion. Since each agency may hold slightly different information, it’s worth reviewing all three.
Some people set a quarterly reminder to review their reports, while others prefer to use services that provide monthly updates or alerts. Choose a schedule that fits your lifestyle and keeps you informed.
Where to access your credit report
You can request your statutory report for free online from each of the main agencies:
- Experian
- Equifax (via Clearscore)
- TransUnion (via Credit Karma)
These platforms also offer free tools, such as credit monitoring, score tracking, and alerts when something changes.
Being proactive with your credit report doesn’t just keep your score healthy; it puts you in control. With the right approach, checking it can become a quick and simple habit that protects your finances and gives you peace of mind.
