Press Release

HOW TO IMPROVE YOUR CREDIT RECORD

14 December 2006

Getting credit can be essential for everyday living, especially at Christmas time, and being refused is frustrating. It can also be confusing if you do not know why you have been turned down.

So how can you improve your chances of being approved for credit? The Finance & Leasing Association offers some useful hints from their new consumer guidance leaflet “Your credit decision explained”:

Keep up to date with existing credit – Paying your existing credit card and loan repayments on time will show that you’re likely to be able to meet future credit payments.

Be patient not persistent – If you’re refused credit for a product or service, don’t keep on reapplying as this may lower your score. Wait a couple of months before making further applications.

Get yourself on the electoral register – Banks, finance companies and retailers carry out this standard check to make sure you are registered at the addresses you provide.

Don’t leave out previous addresses – If you’ve moved a lot in the last three years, don’t be tempted to leave out any previous addresses. This could be seen as an attempt to conceal unpaid credit at that address and may be treated as suspicious.

Be honest about your credit history – If you’ve been in difficulties in the past and not been able to meet your repayments, or you’ve got county court judgements against you, be upfront as this information is easily traced.

Settle bad debt – Although unpaid credit and county court judgements will stay on your file for six years, they will be marked as settled once you pay the debt. This could be taken into account when you’re making future applications.

Get the facts – If you’re still puzzled at why you’ve been refused credit, contact a credit reference agency to get a copy of your credit file. This will show you all the information about you that lenders and retailers can see. The agencies must give consumers copies of the information they hold. There is a charge of £2, and you will need to give the agency your full name and all addresses you have had over the last six years.

Dispute any inaccuracies – Once you have your credit file, check all the details carefully. If you find any incorrect information, tell the agency. You can also add a note to your file, to explain any special circumstances.