Everybody has a credit file that details their past and existing credit activities. It is accessed by credit providers when you apply for credit to check your credit worthiness and up until March 2014 it was a negative scoring system, that is if you defaulted on a loan a black mark was recorded on your file which would then be seen by other credit providers who would then generally not lend you any credit because of your bad history.
Since March 2014 the information that is kept on your credit report has changed to a comprehensive view of your credit history which now includes a positive view as well.
Your credit file now incorporates:
Credit account information
- Amount of and type of credit account applied for (mortgages, car loans, personal loans, credit cards)
- Account open date and close dates
- Credit limit history of accounts held
Monthly repayment history
- Your monthly repayment history will now be recorded and will include:
- How much you paid (minimum payment or additional funds)
- Number of times you have missed your monthly repayment due date
Having a good credit file with positive history will make you more attractive to credit providers when applying for credit.
Some tips on keeping a good credit file
- Pay your bills on time (Power, Gas, Water, Credit card bills etc)
- Pay more off your loan or credit card each month
- Only apply for credit when you need it
- If you are having trouble keeping up your credit commitments seek financial help as soon as possible
- Get a copy of your credit file and ensure that all the details are correct.