How to Obtain Your Credit File and Repair Your Credit Problems

How To Obtain Your Credit Fileand

Repair Credit Problems

by Creditplus

Contents1.0 Introduction

2.0 HowToGetCopiesOfyourCreditFile

2.1AgencyAddresses 2.2SampleLetter

3.0 UnderstandingYourCreditFile

3.1NegativeEntries 3.2PositiveEntries

4.0 HowtoImproveYourChancesof GettingCredit

5.0 AGuidetoCleaningUpYourCreditHistory

5.1SampleLetter 5.2DefaultNotices 5.3HowToRemoveSearches 5.4HowToRemoveCCJs 5.5TheAffidavit

6.0 CreditScoringandFinanceApplications

6.1TopReasonsWhyYourCreditScore MightBeLow

7.0 FrequentlyAskedQuestions

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Copyright © Whichdeal Limited

Wheneveryoutrytoobtaincreditthecompanythatarepotentiallygoingtolendyoumoneywillalwayscheckyourcreditfile.Whattheyfindonyourcreditfilewillbethedetailsthatmakeupyourcreditratingandultimatelydeterminewhetherornottheywillofferyouthecreditlinethatyouareapplyingfor.

Whenyouhaveagoodcreditfileyouwilloftenhaveawiderchoiceofwhereyouwishtoobtaincreditfrom.Whenyoumakeanapplicationyouwillbehighlylikelytobeacceptedwithoutanyissues.However,ifyouhaveacreditfilethathasahistoryofnegativeissuessuchasmiss-payments,defaults,CCJsandotherproblems,itcanbehardtoknowwhattodonext.EachmonthatCreditpluswehavecustomersthatstruggletoobtaincreditforacar.Weknowfromourowncustomersexperiencethatitcanbedistressingtofindoutthatyourcreditfilehasissues,someofwhichyoumaynotevenbeawareof.

Wehavecreatedthisguidetoaidanyonewhoisstrugglingtoobtaincredittostartthejourneyofrepairingtheircreditfile.Allofthekeyinformationyouneedisincludedinthisonereport.Thereisnoneedtogooffanduseanindependentcompanythatwillchargeasmallfortunewhilemakingfalsepromisesabouthowtheywillimproveyourcreditfile.Withinthisguidewewillprovideyouwithvitalinformationsuchas:

• Wheretoobtaincopiesofyourcreditfile(includingsampleletters)• Howmuchyourcreditfilewillcost• Howtounderstandyourcreditfile• Whatcountsaspositiveandnegativepointsonyourcreditfile• Whatyoucandotoimproveyourcreditprofile• Howtocleanyourprofilesoitaccuratelyrepresentsyourcredithistory• Howcreditscoringworksandwhichareasholdthemostweight• Manyfrequentlyaskedquestionaboutcreditratings

1.0 Introduction

Did you know…You can improve your credit rating


Itcanbedifficulttounderstandyourcreditfileandtomakesureeverythingwithinyourfileiscorrect.Thiscanbecomeevenmoredifficultwhenyoumisspaymentsorothernegativeissuesappearonthereport.Thisguidehasbeencreatedtoensurethatyoucanquicklynavigateyourwaythroughthepotentialminefieldofcredit,creditfilesandcreditscores.Themostimportantthingthatyouneedtoknowiswhatisinyourcreditfileandhowyoucanimproveitifneedsbe.Todothisyouneedtoobtainacopyofyourfile,whichyouarelegallyentitledto.Thesecreditfilesareheldbycreditreferenceagencies,andthemainagenciesarecalledEquifax,ExperianandCallCredit.Thegreatnewsisthatitonlycosts£2toreceiveacopyofyourreport,andthemoneysimplycoversthecostofthepaperworkandadministrationfromeachagency.

Theseagencieswillnotgiveyouthisinformationoverthephone,soyouneedtowritealettertoreceiveacopyofyourfile.Thisdocumentshouldquoteyourfullforenameandsurname,yourdateofbirthand(thisisveryimportant)fulladdressesforeverywhereyouhavelivedinthelastsixyears(addressesmustincludeyourpostcodes).IfyouhaveforgottenanyofyouraddressestheRoyalMailwebsitehasausefulpostcodefindertoolwhichcanhelpyouwhichyoucanfindontheirwebsite(www.royalmail.co.uk).Writetheletter(thetemplateexamplecanbefoundonthenextpage)andincludeapostalorderorachequefor£2(madepayabletothecompanyyou’rewritingto).Yourcreditfileshouldarriveshortlyafter.

Alternatively,youcanapplyandevenviewyourfileonlineifyoulike,whichcansavealotoftime.Youneedallthesameinformation,howeveryousimplyneedtovisitthefollowingwebpages:

http://www.equifax.co.uk/Products/credit/statutory-report.html#http://www.experian.co.uk/consumer/statutory-report.htmlhttps://www.callcredit.co.uk/stat-report-online/

Ifyouaremarried,itisrecommendedthatyousendseparatedocumentsandyouwillneedtopayseparatelyaswell.Thisisrecommendedbecauseitmaystillbepossiblethatoneofyouhasbad/inaccurateinformationontheirfile,whereastheothermaystillhaveagoodcreditprofileandbeabletoobtaincreditatagoodlevel!

2.0 How to Get Copies Of Your Credit File

Did you know…You can obtain a free copy of your credit rating


2.1 Here are the addresses of the respective agencies:Experian Ltd, PO BOX 8000, Nottingham NG1 5GX

Forconvenience,youcanalsoapplyonlineat:www.experian.co.uk/consumer/orderPaperReport.html

Equifax PLC, Credit File Advice Centre, Box 1140, Bradford BD1 5US

Theirwebsitecanbefoundat:www.equifax.co.uk

Consumer ServicesCallcredit LimitedPO Box 491LeedsLS3 1WZ

Callcredit’swebsitecanbefoundat:www.callcredit.co.uk

Did you know…We have provided sample letters in this report


2.2 SAMPLE LETTER

YOURNAMEYOURADDRESSTOWNCOUNTYPOSTCODE

ExperianLtd,POBOX8000,NottinghamNG15GX

Towhomitmayconcern,

UnderSection158(1)oftheConsumerCreditAct1974,Iamwritingtorequestastatutorycopyofmycreditfile.Tocoverthesecosts,pleasefindenclosedapostalorderfor£2.00.

MynameisFORENAME(MIDDLENAME)SURNAMEandmydateofbirthisthe00thMONTHYEAR.Mycurrentaddressandallmyaddressesforthelastsixyearsarebelow:

ADDRESSONE,TOWN,POSTCODE–May2011toPresentADDRESSTWO,TOWN,POSTCODE–May2010toMay2012ADDRESSTHREE,TOWN,POSTCODE–May2005toMay2010

YoursFaithfully,YOURNAME

Did you know…Whenever you apply for credit your file will be checked


Wheneveryourequestcredit,beitfromahigh-streetshop,aloancompanyorcreditcardcompany,theywillrunacreditcheckwithoneormorecreditagenciesthatholdyourcreditinformation.

PleaseNote:EveryUKresidentovertheageof16yearswillhaveacreditfile.Thiscreditfileiscompletelylegalandcannotbeoptedoutof.Thecreditfilewillholdinformationaboutyourcredithistory.Thisinformationwillthenbeusedtodeterminewhethercreditwillbeofferedandtherateofinterest.Dependingonthecompanyyouhaveappliedtoforcreditandtheinformationaboutyourpreviouscredithistory,theremaybetimeswhenyourcreditrequestisrejected.Inthiscase,itispossibletoaskthecompanytoreleaseinformationonwhichagencyissuedthecreditinformationtothem.IntheUK,theagencythathasbeencheckedwouldgenerallyeitherbeEquifax,ExperianorCallCredit.

IfyouwouldliketoknowwhichCreditAgencyhasbeencontactedwhenyoumadeanapplicationforfinance,thecompanythatyouapproachedtoborrowmoneyfromlegallyhastotellyouwhichagencytheycheckedwith.Belowisasampleletterthatyoucanusetocontactacompanytoidentifythecreditagencywhichyourrecordshavebeencheckedagainst:

SAMPLELETTER:

Dear(COMPANYNAME)

UnderSection157oftheConsumerCreditAct1974,Iamwritingtorequestthenameandaddressofanycreditreferenceagencywhichhasissuedyouinformationaboutme.Irequestthatyoureplywithinthenextsevenworkingdaysuponreceiptofthisletter.

YoursFaithfully

YOURNAME

Did you know…You can not opt out of having a credit file


Usuallythemaincreditagencieswillholdthesameorverysimilarinformationaseachother.Theyalsoregularlysharetheirinformationtoensurethatallcreditagenciesofferthebestpossiblelevelofdetailaboutthecredithistoryofanindividual.Thereisapossibility,however,thattheirfileswillnotmatch,duetothemholdingdifferentdatabases.Buildingsocieties,banksandotherfinancehousesarealsoofferedasimilarservicefromthecreditagenciestoensuretheycanmakesensibledecisionsabouttheircustomersandwhotheyoffercreditto.

Allinformationheldbytheseagencies,bothgoodandbad,isdeletedafteraperiodof6years.Eveniftherelevantdebtiscleared,CCJsareheldforasix-yearperiod,duetolendersbeinginterestedinaroundedcredithistoryofthecustomer,andwouldwanttoknowofanyrecentreasonswhytheborrowermayhavefailedtopaybacktheirdebt.

Typicaldetailsthatmaybeheldwouldinclude:

• Yourname• Youraddress• Howlongyouhavebeenatyourcurrentaddress• Yourdateofbirth• Allknowncredittransactions• Lenderdetails• Repaymentdetails• Youraccount’scurrentstatus• Anyotherinformationrelatedtopreviousborrowing• Voter’selectoralinformation• Knownaliases• Financiallinkedassociates• Recentcreditsearches

Youarefreetoobtainthisinformation.Thereshouldnotbeanyadditionalinformationaboutyoueithersoyoushouldcarefullycheckwhatisonyourfile.

Did you know…Each credit agency will hold slightly different information about you


Anareathatmanyconsumersareunawareofwhenapplyingforcreditisthatalargenumberofsearches(orinquiries)canhaveanadverseimpactonyourcreditscore.Thisismorelikelywhenyouhavehadaborrowingrequesteddeclined.Aseachtimeyoumakeaborrowingrequesttoalenderitisrecorded,lendersthatyouapplytointhefuturewillbeabletoseetheinformation.Theywon’tbeabletoseethelender’snames,butwillseethedateandtypeofsearch.

Anotherpointtokeepinmindisthathavingtoomanycreditsearchescanaffectthewaythatlendersviewyourcreditprofile.Ifyouaresimplyshoppingaroundforaquotetoseeifcreditisaffordableitissensibleonlytoapplytooneortwolenders.

Somepeoplewillgetveryanxiousaboutcreditsearches,buttheyarenormalandwillnotimpactyoutoomuchaslongasyouaresensiblewiththeamountthatyouhaveconductedonyourfile.

Ifyouarenotseriousaboutobtainingcreditthenitisbestnottohaveacreditsearchconducted.However,youwillalwayshaveacreditsearchonyourfilewhenyoudoapplysodonotbeafraidofthisprocess.

Ifyouhavebeenrejectedthreeorfourtimeswewouldrecommendthatyoustopapplyingforcreditandfollowingsomeofthestepsinthisguidetoobtainandrepairanynegativeissuesthatmaybeonyourfile.

Did you know…The information on your credit file will be removed after six years


Whenyoureceiveyourcreditprofileyouwillseeboththepositiveandnegativeentriesthatarelisted.Theremaybetermsonyourfilethatyoudonotunderstand.Thelistoftermsbelowexplainseachofthesetomakesureyouhaveaclearunderstandingofdifferentpointsonyourcreditfilethatcouldbeaffectingyourcreditrating.

3.1 Negative Entries

Missed PaymentsWhenyoumissapaymentitwillberecordedonyourcreditfile.Oftenmissingpaymentswillharmyourcreditfileandmaymeanthatyouwillstruggletoobtaincreditatalaterdate.Evenifyoujustmisstheoddpayment,whenyoudogetacceptedforaloanyoumayfindthattheratesarehigherthanexpected,asyouarenowperceivedasbeingahigherrisktothelender.Recentmissedpaymentshavemuchgreaternegativeimpactthanhistoricones.Currentarrearshavemaximumnegativeeffect.

DefaultsIfyouhavemissedmultiplepaymentsonacreditagreementitmayresultina“default”.Ifyoudefaultonacreditagreementthecompanythatlentyouthemoneywillsendtherecordofthedefaulttothevariouscreditagenciesandtheywillbeplacedonyourcreditfile.Thepaymentprofilewillthenstopandonlythebalanceisupdated-Thisstaysonyourfilefor6years.

County Court Judgements (CCJs)CCJstandsforCountyCourtJudgements,thisisthetermusedwhenyouhavebeentakentocourtforfailuretopaybackmoneyyouowe.UnfortunatelyCCJswillnegativelyaffectyourcreditfileandyouwillstruggletoborrowmoneyfromprimeornearprimelenders.ACCJwillstayonyourcreditprofilefor6yearsandwillseriouslyharmyourabilitytoobtaincredit.IfyoupaythemoneyowedwithinonemonthoftheofthecourtissueyouwillbeabletohavetheCCJremovedfromyourfile,butinordertodothis,youwillneedaCertificateofSatisfaction.IfyoupaytheamountAFTERonemonth,itwillbeshownonyourfileassettled(iftheabovecertificateisissued)forsixyears.Eventhoughitissettled,lenderswillseeanyCCJsonyourcreditfileasanegativeentryanditcanimpactfuturecreditrequests.

3.0 Understanding Your Credit File

Did you know…Negative points on your file will affect the rate you can borrow at


BankruptcyIfyoubecomebankruptyouwillstruggletoobtainfinance.Again,thisinformationisheldfor6yearsbythecreditagencies.Therearewaystogetthisremovedthough.Ifyourbankruptcyorderis“annulled”orwithdrawn,youcansendacopyofthecertificateyouwillhavebeenissuedtothecreditagencies.Ifyourbankruptcyorderends,youmustsendacopyofthedischargecertificate,andtheagencieswillalsoupdatetheirfiles.

C.I.F.A.S.ThisstandsforCreditIndustryFraudAvoidanceSystem,andanyCIFASentryonyourfileisbad.CIFASregistersdifferenttypesoffraud,suchasfalsenames,stolencreditcardsandfalseapplications.WhenthereisaCIFASentry,itmeanslenderswilltakeextracaretoensurethattheapplicationisgenuine,thoughunfortunatelysometimestheapplicationwilljustberejected,evenifitislegitimate.Onereasonforthis,forexample,wouldbeifyouraddresshasbeenusedforfraudulentactivityinthepast.Thecreditreferencingagencyshouldbewrittento,requestingallthedetailsofaCIFASentryifthisisthecase.

IVAIVAstandsforIndividualVoluntaryArrangementandisusedbyanindividualtocometoadealwithalendertoavoiddeclaringthemselvesbankrupt.AnIvaisalegallybindingcontract,whichstaysonyourfileforsixyears.Essentially,theyallowyoutoconsolidateyourdebtintoasinglemonthlypayment.TherearemajorbenefitstoanindividualtoenteranIVAasoftentheywillbeabletoreducetheirtotalamountofdebtbyupto75%,leavingtheindividualtopayoffthebalancewithin3to5years.LenderswillnotlookatanIVAinapositivelight,andindividualswillstruggletoobtaincredituntilthisisremovedfromtheircreditfile.

Did you know…Being on the electoral roll is vital to borrow money


3.2 Positive Entries

Subscriber Supplied Information / Credit Account InformationUsuallywhenyouhavealineofcreditthehistoryofthatcreditwillbedetailedonyourcreditfile.Eachcreditaccountthatyouhavewillbelistedindividually,althoughitispossiblethatnotallofyouraccountsarelisted.Thecreditwillberepresentedbyarowof12numbers.Eachofthe12numbersrepresentsamonthofthelastrollingyear.Thenumbershownwillrepresentwhetherornotyouhavemadepaymentsontime.Theyalsoshowifpaymentsaremadelate,howlatetheyareandifyouhavedefaulted(thiswillberepresentedwithaDnotanumber).Belowisanexample...

0 0 2 1 1 2 2 3 2 2 1 0

Intheexampleaboveshowstheaccountholderwas2monthsbehind,3monthsago,and2monthsbehind,6monthsago,etc.Awelllooked-afteraccountwouldgenerallybefilledwithonly0’sandtheoccasional1(ifyouwerelateonemonth).Ifyouhaveall0’sitmeansyou’vekeptupwithallofyourpaymentsforthelastyear.Thisisaverygoodsignalforlendersasitshowsthatthepersonhastheabilitytomanagetheirfinanceswell.Thismakesthemalowerriskwhenitcomestolendingthemmoneyinthefuture.Hereisasummaryofwhatthecodesmean:

0–Paymentsareuptodate1–Inarrearsbyonepayment2–Inarrearsbytwopayments3–Inarrearsbythreepayments4–Inarrearsbyfourpayments5–Inarrearsbyfivepayments6–InarrearsbysixpaymentsD–Accountdefaulted.Thisoftenmeanstheaccounthasbeenclosedorlegalactionhasbeentakenandthelenderhasformallyaskedforallthefundsback.

Did you know…You can challenge any incorrect information on your credit file


Youwillalsobeabletoseeasummaryofthelast36months,wheretheDefaultswouldgenerallybeshown.

Electoral Roll InformationThisisaveryimportantfactorandisusuallyunderstatedbymostconsumers.Traceabilityisincrediblyimportanttoalllendersasitshowsthatyouarehappytoprovewhereyouareliving.Theelectoralrollisalistofallofthepeoplewhohaveregisteredattheircurrentaddressandhavetherighttovoteforelections.

TheelectoralrollisgenerallypreparedeveryFebruary,soifyoumissthedate,it’sagoodideatocontactyourlocalauthorityandgetyourdetailsadded.Thiscanthenbeaddedtoyourcreditfile.Ifyouarenotontheroll,itmaypromptlenderstoquestionwhy,andwillcauseproblemswithcreditapplications.Lendersliketoseeaconsistentaddresshistoryasitmeansifanythingweretogowrongandyoudon’tpaybackthecredit,thelenderwouldknowyourcurrentaddress.

Did you know…You should inform your lender if you’re struggling with payments


Pleasenotethestepsyoucantaketoimproveyourabilitytogetgoodcredit:

Check your credit report-Peoplethatknowexactlythestateoftheircreditfilewillbeatamassiveadvantagewhenapplyingforcredit.Ifyouareunsureofwhatisonyourcreditfilemakesureyougetacopyofyourfilenow.Ifnothingelseitwillensurethereisnothingontherethatshouldn’tbeandthatneedstobechallenged.Check if you are on the Electoral Roll-Ifyou’renot,getonit.Itwilldefinitelyhelpinthelongrunaslenderswanttoknowwhereyouhavebeenliving(alsoknownastraceability).Get a Discharge Certificate–Ifyouhavebeenbankruptinthepast,butyourbankruptcyhasended,makesureyouinformthecreditagencies.Sendthemthedischargecertificateorannulmentandensurethattheyupdateyourfile.

Get a Certificate of Satisfaction-Itcostsjust£10togetaCertificateofSatisfactionfromacourt.Ifyou’vepaidaJudgementandithasn’tupdatedtosay“Settled”onyourfile,youshouldcontactthecourtandrequestoneimmediately.

Inform the Lenders if you are in trouble-Ifyouarestrugglingtomakepaymentsontimemakesurethatyouinformtherelevantlenderorcreditprovider.Thesecompanieswilllookfavourablyonpeoplewhocommunicatewiththemwhentheyarestruggling.Somelendersorcreditprovidersmayevenbeabletoofferoptionstohelpyoumanageyourdebt.Donotjustignorethatfactthatyouarestrugglingasitwillmakethingsharderforyouinthefuture.

Ifyoucanmakethepayments,do!Itgoeswithoutsayingthatmakingpaymentsontimeisthemostbeneficialthingyoucando.

Challenge Incorrect Files-Ifallyourpaymentshavealreadybeenmadeandyouhavealwaysbeenuptodate,butyourfiledoesnotreflectthis,contactthecompaniesinvolvedandtheycanmakearrangementstochangeyourfiletoreflectthis.

4.0 How to Improve Your Chances of Getting Credit

Did you know…Every time you apply for credit a search will be recorded on your file


5.0 A Guide to Cleaning Up Your Credit History

Thenextsectionwillhelpyoutomakesureyoucancleanupyourcreditfilesoyouhavethebestpossiblechanceofobtainingcreditinthefuture.Belowaresomeimportantpointsthatyoushouldfollowinordertomakesurethatyourcredithistoryisaccurateandaspositiveaspossible.

After6yearsitisnormallyyourlegalrighttohaveinformationremovedfromyourcreditfile.Thisisnotalwaysdoneautomaticallyforyousomakesureyouwritetothecreditagenciesandrequestthatitiscompleted.

Ifyoufeelthatanentryonyourreportneedsexplaininginmoredetail,youcanfileaNoticeofCorrection.Thisshouldbenomorethan200words,andmustbecorrectandrelevanttotheentryyouarewritingtocorrect.Somegoodreasonstochangeanentrywouldbelosingajoborsufferingfromalong-termsickness.However,somelenderswillstillrejectapplicationswithacorrectionstated.

5.1 SAMPLE LETTER

Dear(Agency)REFERENCENUMBER

Thankyouforsendingmemyreportdated00.00.00,Pleaseaddthefollowingcorrectiontomyfile.

NOTICEOFCORRECTION

I,YOURNAMEofYOURADDRESSwouldlikeittobeknownthatthejudgementrecordedagainstmefor£XXXreferstoapaymentIwasunabletomakeduetobeingmaderedundantin2010.Igainedemploymentagainin2011andpaidthebillinquestion.Pleaseamendmyfileforanybodysearchingittotakethesefactsintoaccount.

Faithfully,

YOURNAME

Did you know…No one can guarantee that a CCJ will be removed from your file


Pleasenote:youwillneedtofillinthedetailsthatarerelevanttoyourpersonalsituation.

Thenewinformationthatyouprovidewillneedtobeupdatedonyourfile.Anupdatewillalsobesenttoanylenderwhohasrequestedyourinformationinthepast6months.

Ifthenoticeofcorrectionrelatestoacountycourtjudgementorsheriffcourtdecree,theagencywillpassittoRegistryTrustLimited,whowillpassittothecreditreferenceagency.Ifthenoticereferstoinformationotherthanajudgementordecree,youshouldcheckiftheagencyhasthesameinformation,andifso,senditthenoticeofcorrection.

Theagencyhas28daystoreplytoyourletter.Ifitdoesn’t,youcanasktheDataProtectionCommissionertointervene.Thereisapossibilitythatanagencymightdeclinetoaddthenoticetoyourfile.Inthiscase,itmustreferthemattertotheDataProtectionCommissionerforadecision.

Sometimesyourfilemaybemixedupwithsomeonewiththesamenamelivingatthesameaddressasyou.Ifyoubelievethisisthecasethenyoucanrequestanoticeofdisassociationfromthecreditreferenceagency.Youwillbesentaformwhichyouwillhavetosignandreturn.Oncethishasbeenreceivedbytheagencytherecordwillthenbedeletedfromyourfile.IftheagencyrefusestomakeavalidchangeyoucangototheDataProtectionCommissionertolookintothecase.

5.2 Default Notices

YoushouldcheckyourfileforanynoticesofDefaults.Ifyouhaveanythenyoushouldusetheinformationprovidedbelowwiththesampleletterbelowtowritetothefinancecompaniesthathaveissuedthedefaultsagainstyou,atthispointyoushouldtrytosettlethedefault.

Adefaultisarecordsenttothecreditreferenceagenciesfrombanks,buildingsocietiesorotherfinancialinstitutions,detailingthingssuchasmissedpaymentson

Did you know…An ‘Affidavit’ is vital if you want a CCJ ‘set aside’


acreditagreement.Theyarenotinthepublicdomain(unlikeCountyCourtJudgements);theyareonlyheldinthecreditagencyrecordsandaredesignedtoalertotherfinancecompaniesthatyouhavedefaultedonapreviouslyagreedcreditagreement.Assuch,theyareviewedasimportantinformationforlenderswhowillusetheinformationtomakefuturedecisions.

Theonlywaytoremoveadefaultisbycontactingtheorganisationwhoservedthenoticeofthedefaultinthefirstplace.Lookingthroughyourfile,youwillbeabletotellwhoplacedthenotice.Onceyouhavethisinformationyoucansetaboutcontactingthemandcomingtoanagreement.Theymaybeabletoremovethenoticeinanyofthesesituations:

• Thedefaultnoticewasservedbutthepaymentswerethenbroughtuptodate.• Theloanhasnowbeenfullyrepaid.• Thepaymentsarestillindefaultbutanarrangementhasbeenmadewiththe

companyinquestion.• Youthinkthenoticehasbeenplacedonyourfileincorrectly.

SAMPLELETTER:DearSir/Madam

IamwritingregardingarecordwhichhasbeenplacedonmyfileconcerningadebtthatIowedtoyou.Ifthisdebthasnowbeenrepaidorsettled,pleasewriteandcon-firmthissothatIamabletoclearmynamewiththecreditreferenceagency.Ifthedebthasnotbeensettled,pleasewritewiththedetailsofwhatyouwouldrequiretosettletheoutstandingdebt.

TheloanwastakenoutontheDATEHEREandmyaccountnumberisNUMBERHERE.

Yoursfaithfully,

YOURNAME

Did you know…Each lender will have their own lending criteria


Providethefinancecompanywithasmuchinformationasyoucan.Themoreyouprovidethemwiththeeasieritwillbeforthemtohelpyou.Forexample,ifyoutookouttheloanatanoldaddress,includethosedetails,alongwiththedetailsofyournewaddress.Ifthefinancecompanymentionthatyouarestillindebtwiththem,andgavearepaymentdate,itisworthwritingbacktothemstatingthatyouwillonlydothisiftheyarepreparedtowritealetteraskingthatthedefaultnoticeisremovedfromyourreport.

Manylargeorganisationsarenotgoodatkeepingpaperworkandthiscansometimesbeanadvantageyou.Writetothelendertorequestacopyoftheoriginalsignedagreementforthedebt.Iftheycan’tdothisyouhavetherighttorequestthattheyremovethedefaultfromyourreport,duetothemhavingnosignedagreementregardingthedebt.

5.3 How to Remove SearchesWheneveryouapplyforfinanceorcreditthelenderwillsearchyourcreditfiletoascertainthelevelofriskassociatedtoyou.Thissearchwillberecordedonyourcreditfile.Toomanysearchesmaymakeyoulook‘credithungry’andthiswilladverselyaffectyourcreditfile.Ifyouhavehadsearchesconductedthatyoudidnotauthoriseyouwillwanttohavethesesearchesremovedtoensureitdoesnotdamageyourfile.

Toremovethesesearchesyouwillneedtowritetothepeoplewhorequestedthesearchesoriginally,andaskthemtoprovidewrittenproofthatyouauthorisedthesearch.Iftheycannotprovidethisproof,canaskthemtoremovethesearchinquestion.

5.4 How to Remove CCJsThefirstthingthatyouneedtobecarefulofwhenlookingtogetaCCJremovedisanycompanythatpromisestheycanhaveCCJsremovedfromyourfile.Nocompanycanguaranteethis,andmostwillonlyundertakethesameinstructionsthatwehavelistedbelowforyou.

Did you know…Having a bank account will help you when applying for credit


Writetothecourttorequestallinformationtheyholdagainstyouinregardstoanyjudgementswhichhavebeenmade.

Toremovejudgements,youmustuseanN244form.Anexampleisincludedbelow.It’sworthnotingthatsomecourtsrequirethatyouuseoriginalforms,whichareavailablefreeofchargefromthecourts.

ManypeopledonotrealisethatasurprisingamountofCCJsaretheresultofanundefendedsummons.Thesecasesusuallyarisebecausethedefendantdoesnothing,astheydonotknowwhatresponsetogive.Thecourtthenentersa“JudgementbyDefault”,whichispassedthroughTheCentralRegistrytothecreditagencies.Evenifthedebtispaidoff,thejudgementwouldstayontherecordifnobodyhasaskedforittobe“setaside”.

Ifyoudisputethedebt,havepaidthejudgementorifyoubelievetheCCJwasn’tproperlyobtained,itispossibletorepairorevenremovetheentryfromyourfile.Otherwiseyouwillhavetopaytorepairit.

Asanexample,thecourtswouldlookfavourablyonthedefendanthavingbeenmakingpaymentsregularlyforayearorso.Belowwehavelistedotherreasonstogetjudgementsputaside.Ifyouusethesereasonskeepthemasclearandconciseaspossible:

• Wereyougiven28daysnoticeinordertopaythebills/debts?• Wereyoulivingattheaddresswhenthesummonsandjudgementstookplace?• IfyoutookoutaloanforanyformofcreditwereyouinreceiptoftheDefault

Noticebeforereceivingthesummons?• Didyoureceivethesummons?(Theyarenotsentbyrecordedmail)• Maybeyouwereunabletoattendcourtanddefendyourself.• Thejudgementshouldnotappearonthecreditfilesifitwaspaidwithin28days.• Ifyouagreedtosettle“outofcourt”youshouldnothavereceivedajudgement.• Ifyoudidnotreceiveanynotificationofthejudgement(s)madeagainstyou,you

canappeal.• Didyouagreewiththefullamountofthejudgementatthetime,butnowonly

Did you know…Steady address history will help you when applying for credit


agreewithpartofit?• Wasthesummonstakenoutagainstbothyourselfandanotherpersonjointly?If

so,didyoubothreceiveyoursummons?• Itcouldhavebeenthatyouwereawayfromthetimebetweentheissueofthe

summonsandentryofthejudgement.• Didyoureceivethesummonsontimeforyoutoapplytothecourt?Youhave21

daystoreplytothecourt.Ifthesummonswas21dayslatethenthejudgementwouldhavealreadybeentakenoutagainstyou.

Beforedoingthis,youwillneedafewthings:

1. Theoriginalsummons2. Thenameoftheplaintiff(whotookoutthesummons)3. Thenameofthecourt4. TheCaseNumber

Thatlastpointisveryimportant.WithouttheCaseNumber,courtswillnotevenreadanapplication.Ifyoudon’thaveitforanyreason,youcanwritetothecentralregistryandaskforthedetails.Thiswillcost£15.00.

Theaddressyouneedtowritetoislistedbelow:

Registry of Court JudgementsRegistry Trust Ltd173/174, Cleveland StreetLondonWP1 5PE

Did you know…Even with a CCJ or default you may still get a loan


BelowisanexampleoftheN244NoticeofApplicationform.Aspreviouslymentioned,somecourtsrequireoriginalformstobecompleted,whichyoucanrequestfromthecourts.

SAMPLEFORM

Plaintiff/Defendant’sAddress

YOURNAMEYOURADDRESSYOURTOWNYOURCOUNTYYOURPOSTCODE

Statenatureandgroundsofapplicationtobesetaside…

Iwishtoapplyfor…

Thereasonbeingthat(Ididnotreceivethesummons/wasn’tgivenenoughtime,etc…)

Signed:………………………………….

SignHere:………………………………

Dated:…..../……./20……

AddressforserviceYourAddress: ………………………………………………………… …………………………………………………………

Did you know…Being a home owner will help your credit rating


5.5 The Affidavit

Thisnextpart,“TheAffidavit”isessentialifyouaretomakethecourtbelievethattherequestisgenuine.Withoutone,youarelikelytobedeclinedinyourrequestunlessyouhaveaverysympatheticcourt.

Typeorhand-write(withblackpeninblock-capitals)thedefendant(you)andcourtdetailsontotheformN244asyouseeabove.

Enterthereasonsto“setaside”thejudgement.Themainaimhereisforittomakesense.Nolegaljargonisnecessary,otherthanafter“Iwishtoapplyfor…”youfol-lowitwith“Judgementtobesetasideonthefollowinggrounds.”Itisherethatyoulistyourreasons.

TakeboththeAffidavitandN244formtoasolicitor’soffice,andasktoseeasolicitorfor“aStatutoryDeclaration”.Infrontofthesolicitoryouwillsweartothetruthofthestatementonthe“NoticeofAppeal”.Youwill“MakeanOath”thatthestatementistrue.Youwillthenneedtosignitinfrontofthesolicitor.Theywillthensignandrub-berstampit.

Youwillbechargedthestandard£5fee,whichhastheadvantageofshowingthecourtyouarewillingtogototheefforttoclearyourrecord.

OntheAffidavit,onlyfillinyourdetailsandthecourtdetails.Thebottomsectionisforthesolicitoryouvisittofillin.

TheAffidavit,when“Notarised”byasolicitorandcombinedwiththeformN244theybecomeanofficiallegaldocument,acceptedasgenuineandtruthfulbythecourts.Withoutthese,therequestwouldn’tbesomuchaslookedat,letaloneprocessed.

Oncebothdocumentshavebeensigned,staplethemtogetherandsendthemfirstclasstothecourtconcerned.Makesureitisaddressedto“TheChiefClerk”.

Did you know…Affordability is important when applying for a loan


Oncethecourthasreceivedyourrequest,theymayaskyoutobepresentforthehearing.Ifyoucan’tmakeit,writetothecourttotellthemyoucannotbethere,andthatyouwillbehappytoabidebywhateverdecisionthecourtmakeswithoutyouthere.Itishighlylikelythecourtwilllookuponthisfavourably,asitbothsavesthemsometimeandshowssincerityfromyourself.Wheneveryouarewritingtothecourt,remembertoaddtheCaseNumber.

Afterafewdaysyoushouldreceivenoticefromthecourtofyour“setaside.”

OnthefollowingpageyouwillfindasampleofhowtheAffidavitshouldlook.

Did you know…If one lender rejects your application another may still accept it


SAMPLEFORM:

AFFIDAVITNo1Swornon…………20……..

FiledonbehalfoftheDefendant.

Inthe………………….CountyCourt CaseNo.………………….

BETWEEN………………………………………… PLAINTIFF

AND

………………………………………… DEFENDANT

I(Name)

Of(Address)

MAKEOATHandsayasfollows:

IAMtheDefendantherein

THEwrittencontentsofNoticeofApplicationFormN244annexedheretoaretrue.

ITHEREFOREaskthisHonourableCourttograntmyrequestforjudgementintheabovecasetobesetaside.

SWORNat

Thisdayof……………..20………

Beforeme,asolicitorempoweredtoadministeroaths.

Did you know… Too many credit applications will reduce your credit rating


Onceyouhavehaditconfirmedthatthejudgementhasbeen“SetAside”,youcanwritetothecreditreferenceagenciesrequestingremovaloftheCCJsfromyourfile.ThefollowinglettercanbeusedforremovingbothCCJsandDefaultNotices.Ifyouonlyneedoneortheothertoberemovedthendeleteasappropriate.Givethemasmuchinformationaspossible.Thecreditreferenceagenciesarelegallyobligatedtoupdateyourfileassoonaspossible.

SAMPLELETTER

ExperianLtd,POBOX8000,NottinghamNG15GX

Date:…………………….

DearSir/Madam

Ihaveenclosedconfirmationfromthecountycourtthattheenclosedjudgementhasbeensetaside.Pleaseremovethisjudgementfrommyfileimmediately.

IalsoenclosealetterfromFINANCECOMPANYNAMEstatingthattheloanfromthemhasnowbeenrepaidinfullandthattheyarepreparedtohavethedefaultinmyfileremoved.Pleasealsoremovethisimmediately.Onceyouhavecarriedouttheabove,pleasewriteandconfirmthisassoonaspossible.

Ilookforwardtohearingyourreply.

Bestregards,

YOURNAME

Byanalysingyourcreditfilealenderwillusuallyrateorscoreyourfileaccordingto

Did you know… You can improve your credit rating


theirlendingcriteria.Alenderwillthenusetheinformationfoundinyourcreditfiletodeterminewhetherornotyouarethetypeofcustomertheywanttolendmoneyto.Itwillalsodeterminethelikelyinterestratesthatyouwillbeofferedbyworkingoutiftheassociatedriskinvolvedishighorlow.Thehigherthescore,theloweryourriskyouposetoalender.

Herearesomeusefulpointsthatcouldinfluencethelendingdecision:

1. The Lenders have their Own Criteria-Thoughalllendersrefertothecreditreferencingagencies(usuallyExperianorEquifax),itisalwaysthelender’sdecisionwhetherornotyougetacceptedforcredit.Alllendershavetheirownrules,andtheirownstandardsastowhatcreditscoreisacceptable.

2. You Credit History is Vital-Yourpastcredithistoryisanimportantpartofyourcreditrecord.Ifyourpaymentsareuptodate,andnonehavebeenmissed,yourscorewillbehigher.

3. It is Vital to be on the Electoral Roll / Voters Role-Anyapplicationislikelytobehamperedifyouarenotontheelectoralroll.Asmentionedearlierinthisguide,therollisupdatedtowardstheendoftheyearandpublishedinFebruary,sogetonitassoonasyoucan.

4. Length of Current Employment –Thelongeryouhaveworkedforyouremployerthebetteritwilllookonyourcreditfile.Thisshowsstabilityinyourearningandalsoshowsthatyouareunlikelytosuddenlynotbeabletopaybackanyloans.

5. Length of Address History-Yourcreditscorewillbehigherifyouhavelivedatyourcurrentaddressfor3yearsorlonger.Itwillalsobeabenefitifyouhaveamortgageorifyouownyourownproperty.

6. Bank Accounts–Thelongeryouhavebankedwiththesamebankthemorebeneficialitwillbetoyou.Alsoifyouhavemanagedanyoverdraftswellyouaremorelikelytoobtainagoodloanrate.

7. Number of Searches-Aspreviouslymentionedinmoredetail,eachandeverysearchonyourfileisrecorded.Ifyouhaveappliedformanycasesoffinance,itcouldmakeanegativeimpactonyourcreditscore.

8. Not All Lenders are the Same -Eventhoughyourinformationstaysthesame,eachlenderwillhavetheirowncriteria.Therefore,yourapplicationmayberefusedbyonelender,butacceptedbyanother.

6.0 Credit Scoring and Finance Applications

Did you know… You can obtain a free copy of your credit rating


9. You May Still get a Loan with CCJs-NoteverybodywillrejectyouifyouhaveCCJsinthepastyear.However,itwillloweryourscoreandlimityourabilitytogetgoodrates.

Check Your Credit Score.

Itislikelythatwheneveryouapplyforcredityouwillbefacedwithasimilarsetofquestions.Thesequestionswillhaveacertainscoreattachedtothem,andgenerallytheweightingofthesequestionswillvaryslightlyfromlender-to-lender.Themostcommonquestionsincludedetailsofyourpersonalinformation,homeaddress,jobandaddress,salary,numberofdependants,etc…

Itispossiblethatsomelenderswillaskquestionsotherswon’tdeemimportant.Thereforeitispossiblethatifyouareturneddownbyonecompanythatanotherwillacceptyou.Youalsoshouldn’tassumethatmultiplelendershaveallrejectedyouforthesamereasons.

6.1 The Top Reasons Why Your Credit Score is LowPleaseNote:Dependingonthelendertheimportanceofeachofthesepointswillbeweighteddifferently.

You have a bad history of paying back creditYourhistoryofpayingbackborrowedcreditcanaccountfor35–75%ofyourcreditscore.Don’tbefooledintothinkingitisonlylargerproblemssuchasCCJsordefaultsthatwillhaveanegativeimpact.Anythingfrommissedpayments,goingoveryouragreedoverdraft,toomanycreditsearches,oreventhelackofmonthlyaffordabilitycanhaveanegativeimpact.Whilstnegativeentrieswillstayonyourfilefor6years,theimpactofmissedandlatepaymentsdiminishesovertime.Ifyourpaymentshavebeenontimeoverthelast48months,thelate,olderpaymentswillhavenoimpactonyourscore.

You are not on the Electoral RollIfyouarenotontheelectoralrollattheaddressontheapplicationthereisahighprobabilityyouwillberejected.You have lived at your current address for less than 3 years

Did you know… We have provided sample letters in this report


Ifyouareatenantandmovehousefrequently,itwillstarttoimpactyourcreditscore.Thisisbecauselendersliketoseestabilityinyourlifeiftheyaregoingtotrustyouwiththeirmoney.Evenifyouhaveonlymovedacoupleoftimesinthelastfewyearsyourcreditratingwillstarttodrop.Ifyouareahomeownertheimpactwillbelower.Ifyouhavebeenatyourcurrentaddressforlessthan6months,yourscorewillbeaffected.

New JobEmploymentisanotherareathatlendersliketoseestability.Ifyouhavebeeninastablejobformanyyears,youwillbelookedatfarmorefavourablythansomeonewhochangestheirjobeveryfewmonths.Ideally,ifyouarechangingjobs,youshouldholdoffonapplyingforcreditforafewmonths.Also,ifyou’reinaprobationaryperiod,thiscanalsoresultinadecline.Thisisnotsuchanissueifyoursalaryisincreasing.Anyreasonsyouhaveforchangingjobsshouldbenotedandincludedintheapplication(suchasfreelanceemployment,transferwithinsamecompanyorpromotions).Havingajobforanumberofyears,though,iswhatwillgiveyouthebetterscore.Thereisachancethelenderwillasktoseethelastcoupleofmonthsofpayslipsaspartoftheapplication,sokeepthesesomewherehandy.Itgoeswithoutsayingthatboutsofunemploymentcanadverselyaffectyourcreditscore.

Ifyourprofessionrequiresyoutomovearoundandchangejobsregularly(freelancers,artists,photographers,supplyteachers,etc)itisworthwritingthisdownandincludingitintheapplication.

Income / AffordabilityWheneveryoumakeafinanceapplicationyouwillbeaskedforyoursalaryormonthlynetwage.Lendersneedtoknowhowmuchincomeyouhaveeachmonthastheywillcalculatewhethertheythinkyouareabletoaffordthere-payments.Asaroughruleofthumb,aslongasyourloanrepaymentsareunderaquarterofyourmonthlynetwage,thelenderswillbesatisfiedyoucanaffordtheloan.However,thiswilldependonanyotherfixedcostsyouhavesuchasotherloansandmortgages.Lenderswillalsowanttoensurethesourceyougettheincomefromissteadyandtheamountyouearnisconsistent.No Bank Account / New Bank Account

Did you know… Whenever you apply for credit your file will be checked


Asmentionedpreviouslyinthisguide,itisveryimportanttohaveabankaccount.Ideallyyouwillhaveheldthisbankaccountforanumberofyears.Thiswillgetyouthebestcreditscore,havinganewaccountwillloweryourscore.Nothavinganaccountatallwillbeverydetrimentaltoyourapplication,soitisrecommendedyouopenanaccountassoonaspossible.

Too Many Credit ApplicationsMakinganapplicationeveryfewmonthsshouldn’timpactyourcreditscoretoobadly,but,anythingmorewillbegintoreduceyourscore.Ifyouhavemadeanumberofrefusedapplications,trynottomakeanynewonesforsixmonths.Thisgivesspacebeforeapplyingagainandroomforyoutoreviewyourcreditfileandfindwaystoimproveit.Remember- EVERY applicationandsearchonyourfileisrecordedifit’srunbyalender.Somebrokers(includingCreditplus)runa“soft”search,whichotherlenderswillnotsee.

Filling In The Application FormWhenyouapplyforfinanceitisvitalthatyoucompleteeachofthesectionsaccuratelywithhonestinformation.Thereisnopointtryingtoamendanyoftheinformationaslenderswillrunmanydifferentchecksandyouwillbecaughtout.

Sometimeitmightevenbeworthaddingsomeadditionalinformationifyouthinkit’srelevant.Thismayhelptomakesureyourapplicationisdealtwithefficiently.Alsobearinmindthatitispossibleforperfectlyresponsibleapplicantstoberejected,simplybecausetheydon’tfitthelender’sprofileoftheir“ideal”borrower.

Clearly Complete Your ApplicationIfyoucan,makesureyoutypeupyourapplicationasitwillgenerallybeclearertoreadandwillbemorepresentablethanahand-writtendocument.Ifyoucannottypeit,makesureyourhand-writingisclean,presentableandalwaysuseblockcapitals.

Owning Your Own Home

Did you know… You can not opt out of having a credit file


Ifyouownyourownhome,orarepayingamortgagetoownyourownhome,lenderswilllookuponyoufavourably.Thisisbecauseisshowsthatyouareresponsiblewithmoneyandthatyouarefinanciallycommittedtoanarea.Thereforeyouareunlikelytomoveawaysuddenlytoavoidpayingbackanydebt.

DependentsIfyouareresponsibleforfeeding,housingandclothinganydependentsitmightaffectyourscore.Usuallythough,thescoreisn’tadverselyaffecteduntilyouhave3ormoredependents,asitwouldindicateyourbudgetcouldalreadybeunderstrain.Surprisinglytosomepeople,thosewhohavenodependentsachievealowerscorethanthosewith1-3dependents.Thisisduetotheassumptionthattheycouldeasilyuproottheirlivesandmoveoniftheirdebtsbecometoomuch.

Did you know… Each credit agency will hold slightly different information about you


Q: Why was I turned down for credit?

A:Thelenderyouappliedtomadethisdecision,andonlytheycantellyouwhy.Theymayhaveturnedyoudownbecauseofinformationonyourcreditreportorbecauseoftheinformationtheyhave(suchastheinformationyouprovidedonyourapplicationform).Theyarelegallyboundtotellyouwhytheyrefusedyoucreditandtheyshouldtellyouiftheirdecisionresultedfrominformationheldonyourcreditreport,asaresultofcreditscoring,orbecauseoftheirpoliciesonprovidingcredit.

Q: If one lender has turned me down for credit will others do the same?

A:Notnecessarily.Differentlenderstakedifferentthingsintoaccountwhendecid-ingwhethertogiveyoucredit.Onelendermayrefuseyourapplicationwhileanothermayacceptit.Ifalenderturnsdownyourapplication,getaclearexplanationfromthemwhytheymadetheirdecision.

Donotcontinuetotryandgetcreditatthisstage,itisalwaysbesttounderstandwhyyoumayhavebeenturneddownbeforecontactingotherlenders.Everytimeyoutrytogetcreditwillberecordedinyourcreditfile.Makingseveralunsuccessfulapplicationsforcreditoverashortperiodoftimecanhaveanegativeeffectonyourfile.Followthestepsinthismanualtoobtainyourfileandstarttheprocessofclean-ingupyourcredithistory.

Q: Does making several applications for credit reduce my chances of getting credit in the future?

A:Makingseveralapplicationsforcreditoverashortperiodoftimecaninfluencealendersdecision.Ifyouarehoppingaroundforthebestdeal,youshouldaskfora‘quotation’ratherthanapplyingforcredit.Askingforaquotationshouldnotaffectyourchancesofgettingcreditinthefuturebecause,formosttypesofcredit,lendersdonothavetosearchyourcreditreporttogiveyouaquotation.

Q: What is credit scoring?

A:Theinformationonyourcreditreport,andtheinformationyouprovideonanap-

7.0 Frequently Asked Questions

Did you know… The information on your credit file will be removed after six years


plicationformtoalender,maybeusedbythatlendertogiveyouacreditscore.Thelenderwillusethiscreditscoretoidentifytheriskofofferingyoucredit

Q: Can I find out my credit score?

A:Yes,howeverdifferentorganisationshavedifferentmethodsofcalculatingcreditscores.Theydonothavetotellyouexactlyhowtheyworkouttheircreditscores,buttheyshouldgiveyouabasicexplanationofhowtheircreditscoringworks.Theyshouldalsotellyouwhetheryourapplicationhasbeenrefusedbecauseyourcreditscorewastoolow,orbecauseoftheinformationheldonyourcreditreport.

Q: What do credit reference agencies do?

A:Creditreferenceagencieshavehugedatabasesonthecredithistoriesofcon-sumersknownasC.A.I.Sdata.Thisinformationisgatheredandgiventothecreditreferenceagenciesfromshops,businesses,banks,etc,whichhavegivenyoucreditinthepast.Yourcredithistorycontainsinformationthatpotentiallendersusetoevaluateanddetermineyourabilityandwillingnesstorepaycredit.Typically,creditreferenceagenciesgivethefollowinginformation:Youropenaccounts,creditlimits,amountowingonloans,numberoflatepayments,collectionactions,andwhetheryouownyourownhomeornot.ThereisalsoaC.I.F.A.Sdatabasewhichdetectsfraudulentactivity.

Q: How does a lender qualify me for credit?

A:Mostlenderslookatthenumberofyearsyouhaveworkedatyourpresentjob,thekindofworkyoudo,thenumberandnatureofnegativeentriesinyourcreditreport,theamountofcredityoucurrentlyhave,savingsandorcurrentaccountswiththelender,lengthoftimeatyourpresentaddress,isthetelephoneinyourownname,doyouownyourownhomeandotherfactors.Theyarelookingforstability,especiallyinresidenceandemployment,andofcourse,sufficientincometotakeonmoredebt.

Did you know… Negative points on your file will affect the rate you can borrow at


Torecap,thekeyelementsformanyunderwritingdecisionsarebasedon:tractabil-ity,affordability,creditworthinessandyourattitudetopaybackdebt.

Q: What do I do if I’m turned down for credit?A:Firstly,youneedtounderstandwhyyouhavebeenrejectedforcredit.Thelendermustprovideyouwiththespecificreasonswhyyouwererejected,andthenameandaddressofthecreditbureauthatprovidedyourcreditreport.Youcanappealyourrejectionbysendingalettertothelenderexplainingwhyyouareabettercreditriskthanyourcreditreportindicates.But,itisbesttorebuildyourcreditbeforeap-plyingforcreditagain.

Q: Who can look at my credit file?A:Anyonewithwhatisconsideredapermissiblepurposecanlookatyourreport.Thesecompanies,groups,andindividualsinclude:

• PotentialLenders• Landlords(althoughtheymayonlybeabletoviewcertainportions)• InsuranceCompanies• Employersandpotentialemployers(usuallyonlywithyourwrittenconsent)• Companiesyouallowtomonitoryouraccountforsignsofidentitytheft• Anygovernmentagency(althoughtheymayonlybeabletoviewcertainportions)• Someonewhousesyourcreditreporttoprovideaproductorserviceyouhave

requested• Someonethathasyourwrittenauthorisationtoobtainyourcreditreport

Q: Can I prevent credit reference agencies from holding information about me?A:No,theyhavealegalrighttoholdinformationaboutpeople.Creditreferenceagencies(Experian,EquifaxandCallcredit)helplendersprocesscreditapplications.Iftheydidnotholdsuchinformationitwouldbemuchharderforyoutogetcredit.Agoodcreditrecordmakesiteasierforyoutogetcredit.

Did you know… Being on the electoral roll is vital to borrow money


Q: How long does information stay on my credit file?A:Allnegativeinformationstaysonyourcreditfileforanywherefrom1-6years.

Q: What’s the worst thing that can appear on my credit report?A:Therearebasicallyeightthingsthatnegativelyimpactyourcreditfile.Itishardtoordertheworstpointsasdifferentlendersassesstheinformationdifferently.Somecommonexamplesare:CCJ’s,bankruptcies,repossessionorders,defaults(paid/unpaid),latepayments,multiplesearches,notbeingontheelectoralroll.

Q: I have bad credit. Do I have to wait 7 to 10 years before I can get a loan?A:Itispossibleforyoutohaveagoodcreditfilewithin2yearsofincurringprob-lemswithyourcreditfile.Why?Becauselendersaremuchmoreinterestedinyourpresentcircumstancesthanwhathappenedtoyou3to6yearsago.Rebuildingyourcreditcanbedoneratherquicklythroughasystematicplanandalittleperse-verance.Thecreditreferenceagenciesonlyholdinformationforsixyears,whetherpositiveornegative.Ifyoufollowallouradviceandyoucanquicklyrebuildyourcreditworthiness.

Q: I have my credit report. What do I do now?A:Gothroughitandlookfornegativeitems,suchas:latepaymenthistory,multiplesearches,andpublicrecords(bankruptcies,countycourtjudgments).Ifanyoftheseareinaccurate,disputethemdirectlywiththecreditbureau.Thiswascoveredinmoredetailpreviouslyinthereport.

Q: I found errors on my credit report. What do I do now?A:Allincorrectorunfaircreditinformationhastobeeliminatedfromyourfile.Allconsumershavetherighttochallengetheaccuracyoftheircreditreport.Onceyouchallengetheaccuracyofaparticularitem,thecreditbureaumustinvestigatethatitemassoonaspossible.Ifthecreditbureaufindstheitemtobeincorrect,orcan-notconfirmordenyit,itmustberemovedimmediatelyfromyourcreditfile.

Did you know…You can challenge any incorrect information on your credit file


Q: How do I correct negative information on my credit report?A:Challengingtheaccuracyorcompletenessofanitemisthebestwaytohaveanegativeitemremoved.Itisbestifyoucanincludedocumentationthatsupportsyourchallenge.Ifnegativeinformationisoutdated,youagainneedtobringthistotheattentionofthecreditbureau.Thisshouldbedoneinwriting.Ifthecreditbureaufailstoverifytheitemsyouchallengedwithinareasonabletime(aboutamonth)fromthedateyourchallengewasreceivedthenyoushouldseeklegaladvice.

Q: Should I use a credit repair agency to fix my credit?

A:No.Theyoftenuseillegalmethodsthatcanmakethingsworseforyou.BewaryofagenciesthattellyouthattheycanremoveCountyCourtJudgments(CCJs)andwhorequirealargefeeupfront.Itisbetterthatyouhandleyourcreditproblemsyourself,becauseonlyyoucandoagoodjobofrepairingyourcredit.

Did you know…You should inform your lender if you’re struggling with payments

How to Obtain Your Credit File and Repair Your Credit Problems

Economy & Finance

Transcript of How to Obtain Your Credit File and Repair Your Credit Problems