Frankly, I’m never sure how good an idea it is to report to credit agencies. I see them as a creepy, dangerous intrusion into personal information, but folk on here seem to like them. Please tell me why? Thank you.
If you have a bank account, gas/elec/water/mobile/phone utility, is it highly likely you are already being reported to one or more CRAs as per your sale agreement with them. So start by getting your free report from Experian or TransUnion.
Credit accounts as above creates a history of debt and payment, by doing so boosts your credit score showing you as more reliable and less risky debtor which then enables you to access more credit products at low rates and save more money.
See the difference in cost of loan of £25,000 payable over 10 years below
Low risk customer
The total amount repayable will be £28,777.72
Loan Cost alone £3,777.72
High risk customer
The total amount repayable will be £54,610.55
Loan cost alone: £29,610.55