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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Page 5 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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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’
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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