So, you might have had problems making repayments in the past (be honest!) and as a result, you’re now finding it hard to get credit just when you really need it.
As most of the information on your credit report is kept on record for six years, any past difficulties could make the difference between getting that phone or loan. But don’t fret because there are a few things you can do to make your credit report seem better to lenders:
- If any of the information recorded on your report is wrong or out of date, get this corrected! Do this by contacting the company who recorded the information in the first place, or ask the Credit Reference Agency to contact them on your behalf.
- If you aren’t confirmed on the electoral roll contact your council to register. Lenders will always look at electoral roll information to confirm you at your current address.
- If you’ve got information such as CCJs or defaults, try to pay these and make sure that this is updated in your report.
- Don’t make any more than 2 applications for credit every 6 months. Any more than this and lenders will think that you’re trying to borrow as much money as you can and do a runner!
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- Close down any accounts that you no longer use and make sure this gets updated in your credit report.
- Reduce any limits on credit cards or store cards that you don’t intend on using in full. Lenders usually increase your limits without asking and sometimes this can work against you when applying for credit.
- If you are no longer financially connected to other people listed in your report, get a "disassociation" which will remove this connection by writing to the Credit Reference Agency directly.
And finally, perhaps there were unfortunate circumstances surrounding bad or adverse information recorded on your credit report. Instead of allowing lenders to just see this information without first knowing your side of the story…
- Add a “Notice of Correction” to the items on your report which look bad to explain why this happened. Write a statement no more than 200 words long explaining the situation when the adverse data was recorded and send this to the Credit Reference Agency.
The easiest way you can get a free Experian credit report online is to sign up for a free 30-day trial with Credit Expert.
Remember that Credit Expert membership costs you absolutely nothing for the first 30 days whether you decide to remain a member or not.
Click here to see your FREE credit report
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