What Is NOT On My Credit File?

There can be many mysteries as to what is and what is NOT on your credit file and credit history. These components of what is on your credit files is what makes up your credit score.

Credit scores can be thought of in this way:

High credit score = good

Low credit score = bad

It is not a complicated formula, but does take in a few factors, and adds a percentage to those factors of what is used to create your credit score:

* Payment history 35%: This is how we pay our accounts, pay them late, in arrears or have defaults, and your credit score will drop.

* Balances you owe 30%: This is how much you owe, if you owe a lot and have high balances, your credit score will be reduced.

* How long you have had credit 15%: The longer you have had credit granted to you, the better it improves your credit score.

* Types of accounts you have 10%: Certain types of credit accounts better your credit score. A mortgage loan is better than catalogue credit.

* How often you apply for new credit 10%: The more you apply for credit, the more inquiries or footprints are made on your credit files. Too many of these footprints in a short period of time, reduces your credit score.

The Credit Bureaus

So who gathers all this information and data to create a credit report/history, the credit bureaus.

Here in the UK we have three (3) credit bureaus:

* Experian

* Equifax

* Call Credit now Transunion

Think of the credit bureaus as these huge containers of data, data based on what makes up your credit score.

All your accounts, how they are/were paid, balances, who looks at your credit history, dates for when accounts ere opened, closed, and paid.

A warehouse of data.

And who reports all this data to the credit bureaus, banks, lenders, insurers, anyone who has information on you. But not just any information, information on your finances, and how you pay these accounts.

This may sound like a lot of information, but compared to Social Scoring, it is a drop in the bucket.

Social Scoring or Social Credit, not only takes into account how you pay your accounts and bills, but also your social media, who you are friends with, what you purchase, how you travel, where you travel, your digital footprints, and much more, all go into creating a social score.

However, while social scoring is the future, the future is not here just yet, at least not in the free world.

Do with all that goes into your credit history and credit report, what is NOT on your credit file?

Job History: Oddly enough your job, and your work or job history is not on your credit file. There is no way for a lender to know you are working or not except to request wage statements, and do a full income and expenditure form.

The I&E is to take into account all household income, and also all bills.

Wages: Your credit file as it does not show your job or work, does not also show your wages. It also does not show any benefits you may be receiving either. So once again, lenders rely onI&Es and statements you can provide.

Savings: Your savings and banking details are also NOT on your credit history. You may have £1,000,000 in the bank, but it will not be shown on your credit history.

Spouse: Your partner or spouse, and their accounts, unless they are joint accounts in both your names, will not be shown on your credit history.

Everyone has their own credit file. The only time someone else’s account may show on your credit is if it is a joint account, or you are a co-signer.

Accounts not reported: Not all bank and lenders report to all 3 credit bureaus. And some small lenders, do not report to any credit bureaus at all. So if a lender does not report an account to a credit bureau, it will not show up.

Rent: Unless your landlord reports to the Rental Exchange, your rent is not reported to the credit bureaus.

This does not mean if you default on your rent your landlord may not seek out a judgment against you which can be reported to the credit bureaus.

So while there is a vast amount of information and detail about us on our credit files, there also are a few pieces missing.

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Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.