How To Check And Repair Your Credit Record

Step 1: Obtain your credit report

The first thing you should do is get hold of your credit report from one of the three agencies that hold it: Equifax, Experian and CallCredit. You can find Equifax at www.equifax.co.uk and Experian at www.experian.co.uk

Call Credit can be found at www.callcredit.co.uk

These companies charge, but there is often a loophole to get your credit score for free: join online. By signing up to be a member, you should get a number of days free. You can view your rating, then either cancel your membership at no charge, or keep it going.

Step 2: Correct your report

When you receive your credit file check it for any glaring mistakes and then check that all your personal details are correct. But also check for inaccuracies in your credit history and that your debts are correctly listed. If you do spot any mistakes then make sure you contact the agency asking for them to correct your file. Mistakes like these may be the source of a poor credit record.

Step 3: Justify a bad record

You are allowed to add an explanatory statement on your credit record justifying why your record is poor. This is called a 'notice of correction', and can be influential when you are applying for loans or mortgages. It may mean decisions on whether to extend you credit take a while to come through, but it can help

Step 4: Get your affairs in order

To ensure that your credit record does not worsen make sure that you pay all future bills on time. Settle any county court judgments as soon as you can, and refrain from making lots of credit applications all at once- this hurts your overall rating. It is also essential that you are on the electoral roll, even if there isn't an election coming up, as this information is widely used by the credit agencies.

Step 5: Stability

Stick with the same bank, the same employer, and stay at the same address. Sometime this is impractical, but your credit score loves stability. If you are planning on moving house, make sure you set up all the credit you will need before you move, as your credit score can be disrupted by the process of re-mortgaging and being at a new address.

For more information on credit ratings and credit scores, watch VideoJug's "How to improve your credit rating", and "How to avoid getting a bad credit record".