how to obtain your credit file and repair your credit problems
DESCRIPTION
The guide to fixing your credit rating is a free guide that explains in plain English how you can obtain, understand and improve your credit rating. There is a sample letter you can use to send to the credit agencies to get a copy of your file, an explanation of what the different parts of the file mean. Then there are tips on how to improve your chances of getting credit, a guide to clearing up your credit history, including a sample letter you can use to contact the appropriate people. Information on how to remove CCJs. Visit: http://www.creditplus.co.uk/car-loans/TRANSCRIPT
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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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