Regularly checking your credit rating is very important, as incorrect information can have consequences on an individual when applying for credit. Perhaps you are thinking about applying for a loan, a mortgage, a credit card or another form of credit - instantly checking your credit rating is something that is strongly recommended before applying for any form of credit.

Get your free Experian credit report online and see the information lenders see.

When applying for a loan, a mortgage, an overdraft, a credit card or a mobile phone on a contract, or lenders will "credit score" you to predict your likely behaviour. Credit scoring systems are not published and vary depending on the lender and the type and amount of credit you are applying for. In fact a lender may reject your application, however this does not necessarily mean that another lender would automatically reject you.

Depending on your credit score, determines not only the kind of financial borrowing that is available to you, but also the level of APR. For example, somebody with an "excellent" or "perfect" credit score, will more than likely be able to take advantage of a "special deal" offered by the lender, whether this is a loan, credit card or other form of credit. However if another person who does not have an "excellent" or  "perfect" credit score tries to obtain the same deal, they may find that they are not accepted for the "special deal" but instead offered either a higher rate of APR, or a lower credit limit etc.

Many people still find it frustrating and annoying when they are rejected for credit by a lender. As has been mentioned before, just because one lender rejects you, does not necessarily mean all lenders will. However you need to bear in mind that if your credit history is "poor" in one lenders eyes and they are not prepared to take the "risk", the chances are other lenders will look upon your credit file in the same way and will also not be prepared to take the risk.

It is essential therefore to make your credit file as attractive as possible, to ensure that all information on your credit file is correct and up to date and that there is nothing on your credit file which is going to affect your chances of obtaining credit.

A simple and easy way of checking your credit file is with Experian, where you can view your credit history and see what lenders are viewing about you, when making decisions as to whether to give you credit or not.

To view your credit file, simply follow this link.