Credit - your record

These days having a less than perfect credit record or an irregular income should not stop you from taking out a mortgage or getting access to other borrowing. Recent research reveals that about a quarter of the population would be refused credit, showing that it is not a problem confined to the minority.

If you have had credit problems in the past don't immediately rule out the high street lenders. They say they take each case individually and would consider someone with a County Court Judgment (CCJ) for non-payment of debt, if it was for a small amount and had been cleared some time ago. But if you are refused credit, lenders don't have to tell you why.

Both a CCJ and a bankruptcy order are held on a person's credit record for six years. CCJ's can be withdrawn from your file if they are cleared within one month. It is worth knowing that you could unaware that you have a CCJ on your credit record, perhaps caused by a bill being unpaid if it was sent to an old address.

When you apply for credit, lenders check your credit record, called credit scoring, with specialist credit reference agencies that collect information from the courts, lenders and the electoral roll.

If you feel you there has been an error made in your credit scoring you can obtain your credit file, ask for an investigation and, if proved correct, have your record altered.

Beware of so-called credit repair companies, especially if they try to offer you loans at high rates of interest. If that happens steer well clear.

Contacts

Experian
Consumer Help Services
PO Box 8000
Nottingham
NG1 5GX
0115 976 8747
www.experian.co.uk

Equifax
Credit File Advice Centre
PO Box 1140
Bradford
BD1 5US
www.equifax.com

See also: Financial Services