Many people do not realise how much of an asset having a good credit report is. A credit report is essentially a detailed account of all your current and past financial history. It compiles information that includes any loans, credit cards and mortgages you have or have paid off, your payment history and any outstanding debts you may have. They also hold all the details of whether you have been declared bankrupt and any court judgements against you.

Having a good credit rating will boost your chances of getting the best deals when it comes to borrowing money or credit. Whenever you apply for financial products, your potential provider will first check your credit report to judge how reliable and suitable you are to lend money or credit to. With this in mind, you could find it harder to get the most competitive deals with a poor credit rating. Generally you will find that the better your credit rating, the more you will be able to borrow and the lower your interest rates and the lower your credit rating, the less money you will be able to borrow and the higher you interest rates.

If you are thinking about taking out a loan or credit card you might want to first think about checking your credit report to ensure all the information it contains is correct and up-to-date. After all, if all that stands between you and the loan you want is your credit report, you don’t want it to contain any wrong information. You can access your credit report though credit check agencies. By law, all agencies may supply consumers with a one-off report, but you may have to pay a bit extra for online access. When checking your credit report, if there is anything you do not recognise or you suspect any fraudulent activity contact your agency immediately.