Credit Repair


Before we start I would like to congratulate you on making your first move to rebuilding or improving your credit profile. With the state of the economy at the moment we are all very hard pressed with our finances, so it is understandable that a large percentage of the population is struggling to keep up. I myself have been in the same situation, struggling to juggle my debts, loans, credit cards & bills along with general living expenses can mean an awful lot of us get our self into debt we cannot handle. The first tip I will give is “Do not worry” it may seem impossible, but at the end of the day there are ways to sort this out, its not life or death its just money!

This guide is going to explain how to beat the credit crunch, improve your credit rating and much much more. I have gone from very poor credit rating to good within a year.

Let’s start with the Credit Repair

First let me explain why a good credit rating is essential. Bad credit ratings will result in higher interest loans / credit cards & mortgages, as bad as it seems should you need credit urgently you are likely to be paying double the interest of a person with a good credit rating, leading too even more debt for you!

There are 3 credit reporting agencies in the UK, the two main ones are Experian & Equafax, the third is Call Credit. The ‘Data Protection Act’ states that the information these companies hold on you must be accurate and that it is your right to have inaccurate information taken off your record.

You will first need to get hold of your credit reports, forget Call Credit but you should get at least one of the other two, my favourite is Experian as you can have 1 months free trial and have your report online instantly, Equifax is more expensive but you do have the right to apply for your report by post for £2.

In order to proceed on this course to credit repair I would advise you sign up for your free Experian Trial immediately, it only takes a few minutes and you can call them to cancel within a month and it’s all free, if you are forgetful I would advise signing up printing your report and cancelling immediately.

Please read Experian guidelines carefully, the following sections are the main 3 on your report, they are the ones that matter, the ones that determine what credit you can or cannot get!

Electoral Roll
It may not seem important but it is! If you are not registered on the Electoral Roll companies take this as a negative sign as they cannot confirm your address. This can also decrease your rating. You should apply to be put on the Electoral register immediately, search for electoral register in your County for more details.

Previous Searches
This section will show all searches made against you by the companies you have applied for credit within the last 12 months. It is advised to not have more than a couple every 6 months; any more could adversely affect your credit rating. Rumour has it a search will decrease your rating by 5 points, more than one a month by more. It’s best not to apply for credit until you have gone through this guide and are sure you will be accepted.

Account Information

The most important section! This will have details of any credit accounts you may have, including loans, credit cards, finance, mortgages and most recently bank accounts. It is very important you read this section carefully; look for anything unusual, any inaccurate information, and any missed payments. In an ideal world you would see all payments showing 0, this means you made the payment on time. Anything other than 0 within 12 months can cause problems. CCJ’s and defaults will also show here, these can literally kill your credit record which is why it’s important to stop it before it gets that far, easier said than done!

Experian Scale
Experian uses a scale of 1-1000 to determine people’s credit worthiness. You may think 500 is average but you would be wrong, after a lot of researching the breakdown is likely to be as follows:-

1 - 450 – Very Poor
450 – 700 – Poor
700 – 881 – Fair
881 – 950 – Good
950 – 1000 – Excellent

In order to achieve a high level you would need to show a long credit history with no bad history within the last year and no Defaults within 6 years. You should look at your account information in detail and look to correct any mistakes, contacting Experian who can write to the companies on your behalf.

Top Tip – The FSA regulate banks, if you have any defaults on credit cards or loans write to the bank, enclose a £1 statutory payment and insist on a copy of the default notice as you “Had never received the original” by law they must provide you with this. Should they not, write to them again insisting on the removal of the default (never phone them). Personally this worked for me and can work for you, phone companies are unfortunately excluded (this works because it means they must find the old paperwork and may not be able to)

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