Electoral roll

I remember laughing at an advertisement sticked on a bus persuading people to get themselves registered on the electoral roll in return for better credit ratings. Not so funny anymore when I found out that the two credit ratings agencies – equifax and experian really do use the electoral roll information when they compile my credit histories. So this time I was quick to reply to the council when I realised that my name wasn’t registered to vote on this new property that I recently moved into. Basically equifax and experian use the information on the electoral register as a source for your name and address. So if you weren’t on the register, you have one less source in your credit report to back that you are living in your current address.I used to think that if i didn’t owe any companies any money, or didn’t have any bad debts, I should have good credit history (having mentioned that, it’s probably worth spending £2 to get a copy of your credit history from equifax and experian, just to make sure that the credit history that they compiled reflects your actual position. If they weren’t you should definitely inform them). However, it appears that it doesn’t quite work like that (sounds like it’s coming from the stupid Nationwide advertisement) :). In fact it’ll do your credit history some good by owing banks (say loan or mortgage) or credit card companies some money, but do remember to make repayments (with some interest) on time. By doing so, it shows that you are a good debtor, not running away from debts, and making repayments promptly :)But why is it necessary to build a good credit history? Well, it depends. For me, I want my credit history to work for me when I need to borrow a large amount of money, especially in the case where the amount is much more than my earning power.

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