10 biggest credit score myths busted

Credit scores and reports can be issued by any authorised credit reference agency. At the moment, there are around 25 credit reference agencies that are authorised by the Financial Conduct Authority (FCA) to provide credit reports and scores, however, there are three main companies that lenders typically use: Equifax, TransUnion (formerly CallCredit) and Experian.

If you don’t want to pay to access your credit score, ClearScore offers a free credit checking service that accesses Equifax data. They also offer free identity protection that scans for stolen passwords, security problems and fraud defence tips.

Other options include MoneySuperMarket’s Credit Monitor tool, which enables you to check your credit score and report free of charge using data from TransUnion and offers free personalised tips to help it grow. Experian also has a free service that enables you to sign up and check your credit score with them and Totally Money offers a similar service using TransUnion data.

Different credit reference agencies use different criteria to work out your credit score, so it’s fairly normal to find that your credit score changes from one agency to another. If you know you tend to get a better credit rating with a specific reference agency, it might be worth looking for lenders that use that agency when making their lending decisions as you might get a better deal.

Have any of these points made you rethink how you view your credit score? Are there any more myths you’d like us to bust? If so, we’d be interested in hearing from you. You can join the money conversation on the Rest Less community or leave a comment below.

Author: wpadmin

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