Which? says six pounds for your credit report is money well spent

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- A healthy credit rating means better deals

The £6 it costs to check credit files is a small price to pay as uncovering potentially costly mistakes is not unusual, says Which? Money.

A survey of Which? members showed seven in ten had never checked their files through a credit reference agency.

1,591 Which? online panel members took part in the survey which covered checking their credit files.

Meanwhile, one in five people who had run a check discovered mistakes.

Scoring systems

With lenders increasingly using credit-scoring systems to decide the rate of interest they charge customers, an inaccurate file can mean either being turned down for credit, or being charged a higher rate of interest.

Most lenders use a credit-scoring system which takes into account the information on people's credit files, details on the application form and any other information they hold about the borrower.

Different lenders use different scoring systems so people can be accepted by one lender and rejected by another.

Which? Money advises people to check their files with all three credit reference agencies annually, or at least before applying for credit.

The three credit reference agencies are Call Credit, Equifax and Experian.

The logic behind checking with all the agencies is that different lenders use different agencies and they don't all hold the same information, so people need to check all three credit files.

Not expensive

People don't have to pay for expensive online services from the agencies or anti-identity theft insurance, though - files can be checked for just £2 each, or often for free with an online trial.

Martyn Hocking, Editor, Which? Money, says: "Checking your credit files is quick, simple and cheap. You can check all three files for a total cost of £6 - definitely money well spent when you consider what you could pay in additional interest if there's a mistake on your files."

"You don't have to pay for expensive options promoted by the agencies, though, and watch out for unnecessary ID theft insurance, you can protect yourself for far less simply by checking your files and bank statements."