Improving your Credit Report

Your credit report is central to any application for credit and its content is almost out of your control. It is the lenders and credit reference agencies that update it. This means it can be inaccurate and affect your applications for finance facilities including bank accounts, mortgages, loans, mobile phone contracts and insurance.

This page shows how you can improve your credit report.

What do you need to check on your credit report?

You'd be amazed at the mistakes some reports contain. This can prevent you obtaining credit, unnecessarily for years. For example, a lender may have marked missed payments on your report instead of somebody else's. Another example, is your credit report not showing that you have been discharged from bankruptcy.

If you want to improve your credit report, the following sections show what to check for. It will be useful to have your credit report handy for this.

You can view your credit reports online right now by taking advantage of the free 30 day trials currently on offer, go to the credit report section of Piggy's Money Shop.

Electoral roll information

Some lenders will refuse you credit if your name and address does not show up in this section. This information comes from your local authority and shows that you are registered to vote.

To improve your credit report:

• If you are not on the electoral role, it is essential that you get on it.
• See www.aboutmyvote.co.uk for information on how to get on the electoral roll.

Financial Associations

In the past, you may have had a joint bank account with someone who has bad credit. If this still shows on your credit report, it could be dragging it down.

To improve your credit report contact the relevant credit reference agencies to have the association removed.

Public Records

The public records section of your credit file contains details about your court judgement's, bankruptcies and individual voluntary arrangements. Each will remain on your file for six years.

To improve your credit report:

• Following your discharge from bankruptcy, make sure that your credit file shows that you have been discharged
• You may want to add a "notice of correction" if the bankruptcy or debt problems were out of your control. For example, due to illness.
• After six years, see if the entry has been removed

Account Information

This section contains information about credit accounts that you hold. It will show if you have missed payments, outstanding balances and in the case of bankruptcy any defaulted accounts.

To improve your credit report:

• Ensure each account included in the bankruptcy does not show a current balance. There may be a special indicator called 'Partial Settlement'
• Ensure only accounts that you have previously held or currently hold are included
• Ensure that credit accounts you settled before the bankruptcy show as 'Settled'
• Ensure there are no marks that shouldn't be there. For example, gone away indicates that you no longer live at the address and did not give the lender your new address. This is something that can look worse than bankruptcy
• Another example is deceased - You'd be amazed!

Previous searches

This section shows the companies that have previously searched your credit report, either to confirm your identity or for a credit application.

To improve your credit report:

• If there is a company who you did not give permission to access your report, contact them.
• If you asked for a quotation, then it should show a quotation search. This is less harmful than a credit search. Lots of credit searches can decrease your credit score with lenders.

Repossession Information

If your property has ever been repossessed, then this will show up on your credit report.

To improve your credit report:

• If this section is incorrect, contact the organisation who recorded the entry.

Linked Addresses

This shows addresses that you have previously had a connection with. Contact the credit reference agency if it is incorrect.

CIFAS - UK's fraud prevention service

This section contains information from CIFAS, the UK's fraud prevention service. It does not mean you have committed fraud if there is an entry, however, it would be good practice to contact the organisation that made the entry.

GAIN - Gone Away Information Network

GAIN is a network through which lenders share information on customers with debts who have moved home without giving a new address. The information may include the address the customer moved from and any address the customer has since been recorded at.

As previously discussed you can view your credit reports online right now by taking advantage of the free 30 day trials currently on offer, go to the credit report section of Piggy's Money Shop.