Credit Repair
If you have poor credit, you are certainly not alone - almost 40% of the UK population have adverse credit or CCJ's on their credit record. Bad credit costs money in the long term, the lenders with the lowest rates usually only accept people with clean credit records. Therefore borrowing when you have bad credit costs money so it is your best interest to try to repair your credit rating. There are companies who specialise in credit repair and these can be a handy option, however there are certain things you can do to repair your own credit record.
The first step is to see exactly what is on your credit record. There are three major credit reference agencies in the UK, CallCredit, Experian and Equifax and it is the information that they hold on you which determines whether or not you can get credit. It is not uncommon however for mistakes to appear on your credit record, the credit reference agency may even have linked you financially to someone else.
There are two useful online services which allow you to check and monitor your credit record online - the first checkmyfile.com allows you to monitor the information that all 3 services hold on you, whilst CreditExpert from Experian allows you to monitor your credit record online and alerts you if anything changes
How to Improve Your Credit Record
1. Check your Credit Record with the major Uk credit reference agencies. If mistakes appear, write to the agency concerned with evidence if possible and ask them to amend the error.
2. Ensure the agency have not linked you financially to anyone else. Examples may be linking you to an ex-partner or someone who previously lived in the house.
3. If settled CCJs or arrears appear on your record ask the agency to include a note saying they are satisfied. Sometimes they will remove them completely from your record, otherwise they will add a note to say the default is satisfied.
4. Avoid too many searches on your record in a short period of time. This will raise alarm bells with potential lenders.
5. Make repayments on time. Even if you have very bad credit in the past, making payments on time and avoiding arrears can show lenders you are trying to improve your situation.
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