It is possible to get free credit reports.
You need a good credit score in order to be accepted for a new credit card. Each credit card lender has it’s own scoring system. If you are rejected by one credit card company it does not mean you will automatically rejected by another as every credit card company has it’s own “score sheet” of the “ideal” customer. The credit crunch has made credit more difficult and expensive to get hold of because banks are struggling to borrow money themselves, they have less money to give out to you and I.
Banks are out there to make a profit so if they can see that you are not likely to make them money then they are less likely to want you as their customer. If you repay in full each month or regularly transfer credit card debt to 0% deals on other cards they may see this and refuse you credit. Their “best” customer is one that only pays the minimum repayment each month, earning the institutions lots of money as you only pay the interest and don’t make much impact on paying the debt off.
You can check your credit files online to make sure the information held about you, which the credit card companies will look at, is all correct. There are three main credit file companies; Equifax, Experian and CallCredit. You can check all three in one go with this credit file company CheckMyFile
However you can apply to each of the three credit file companies for your report, costing just £2 a time. You need to write to each company with your full name and address and signature, enclosing a £2 cheque.
Alternatively, there is a loophole enabling you to get a free file from the major two companies…
Free credit reports
There is a “credit monitoring” service, which costs around £70 a year. However, these services offer free month long trials. You do have to set up a Direct Debit from your bank or supply your credit card details for payment. These companies hope you will then forget to cancel it in a months time.
The service allows you to see your credit file online, and it is easier to understand if you just get the normal file (see below).
Here is how to get free credit reports… Sign up, view your file for free, either instantly or when they have sent a code and don’t forget to cancel the subscription.
There are two different “credit monitoring” systems from the major file holding companies:-
- Experian’s system is called Credit Expert
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which offers a “free 30 day trial then £6.99 per month” service which includes your credit report, so if you want your credit reference file just sign up and cancel this.
- You can cancel at anytime ringing this freephone number 0800 656 9000.
- Equifax’s Credit Watch Gold has a ‘Free for 30 days and then £69.99 for the year’ package. When you join your card is “authorised”, but the £1 fee is taken only if you forget to cancel.
- You can cancel by phoning 0870 0100583.
If you are disorganised or can’t be bothered to remember to cancel then write to each company and get your files for £2 each. But to be honest if you can get your credit reports free I would just sign up online and make sure you cancel straight away!
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