REPAIRING BAD CREDIT

Making sure your credit rating is as high as possible is very important if you are going to be applying for more credit. You will want to do everything you can to lessen the effect of any negative elements in your credit history. You need to improve your credit rating so that when a lender performs a credit check you will be in a good position to have your application accepted. Repair your bad credit as soon as you can.

Always Check and Fix your Credit Reports

If you are thinking of applying for credit then get a copy of your credit reports beforehand. Get one from each of the Credit Reference Agencies (CRA) as each one might be different. Check them carefully and make sure anything that should no longer be on a report has been removed.

Your report will give you an insight into how likely you are to succeed before you actually make an application. If you go ahead and then the application fails the report should also help you work out why.

Sometimes a lender will check your credit report more than once for the same application, so ask them to remove the extra searches.

If you have paid off an account which is still showing as unpaid on your report then contact the lender and ask them to get the credit agencies to alter your credit file.

Any outstanding payments due should be paid off with your lender if possible. After you do this make sure you contact the lender and get them to ask the CRAs to change your credit file accordingly.

For any links to addresses, which have nothing to do with you, contact the CRA directly and ask them to investigate. Similarly if anyone else living at your address appears on your report and you have no financial connection to them then contact the CRAs.

Can I remove Incorrect Information ?

By law you have the right to correct information held about you, if it is wrong. The credit bureau should change it for free. You will first need to get a copy of your Credit Report and then contact each credit agency to ask them to make the changes.

Can I add Information ?

You can also add explanatory text to information on your report if you want to. These are called Notices of Correction and might help your credit score, especially if you are giving a good explanation of your circumstances when an account may have fallen into arrears.

Should I use a Credit Repair company ?

No you shouldn’t! These companies can charge a very large fee and can only change what you can change yourself (and no more) and you can do it yourself for free.