Correct Your Credit
If you are serious about repairing your credit status, first you need to take a long hard look at how you got into trouble in the first place. Firstly, get hold of your credit record from one of these two credit reference agencies.
The rate you are charged may vary accordingly. If you suspect that you may have an impaired credit record, you can get hold of your file by sending off to Experian, a credit reference agency. Just send a cheque or postal order for £2 to:
Contact details:
Log onto www.experian.com, or call 08702416212.
Alternatively write to:
Experian, Consumer Help Centre, PO Box 8000, Nottingham NG1 5GX.
Log onto www.checkmyfile.com, or call 0870 0100583. Alternatively write to: Equifax, Credit File Advance Centre, PO Box 3001, Glasgow G81 2DT.
If you have CCJs on your credit record:
You will need to obtain proof that the debts have been dealt with. In the case of a CCJ this will be a Certificate of Satisfaction obtained from the court. For informal settlements this would be a letter from the creditor. For Informal Voluntary Agreements (repayment plans) and bankruptcies etc., confirmation will be required from the Trustee or Insolvency Practitioner.
How you can prevent recurring problems:
Lenders will be concerned about problems recurring. You need to be able to persuade them that this shouldn't happen. The points to consider are: job security, domestic stability, health, affordability, income stability and level of indebtedness. Some issues you can insure against, (redundancy, sickness etc), others are down to common sense.
How much credit can you afford to take on?
Taking all the previous points into account you MUST make sure you can afford the commitment you are proposing. You should be able to demonstrate this by completing a budget form . Print this off and fill it in.
Then ask yourself what if:
- My income reduces
- Are you relying on overtime or bonuses?
- Interest rates increase
- Have you left enough leeway?
Armed with this information you can now approach lenders with your proposition.
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