Credit Repair
Credit repair is the process of amending a credit report so that it accurately reflects the credit history of the person to whom it relates. It is not about presenting a false credit report as a means to obtain credit, it is about presenting accurate information in the best way possible to avoid raising unnecessary concerns with potential lenders.
The first stage of credit repair is to obtain copies of your credit reports. This can be done by contacting the 3 credit agencies:
- Experian - www.experian.co.uk
- Callcredit - www.callcredit.co.uk
- Equifax - www.equifax.co.uk
If information is incorrect, you will need to contact the organisation responsible for lodging the entry and they will then contact the relevant credit agency (Experian, Callcredit or Equifax) to have the detail amended.
As credit reports can only contain information to which they are privy, an additional way to improve the credit report is to ensure that as much information as possible is contained within it and that the information is accurate. Whilst not strictly credit repair, this can go some way to helping a potential lender feel comfortable with you as a prospective customer.
Several steps can be taken to help improve the credit report:
- Ensure you are listed on the electoral roll. You can do this via your Local Authority.
- Ensure that all settled accounts are accurately labelled as such within the report. You can contact the organisation concerned to have them reflect this for any still showing as unsettled.
- Ensure all paid off county court judgments are listed as satisfied within the report. If this is not the case then contact the court in question to have this amended.
- Ensure any bankruptcy orders are shown as discharged or annulled if this is the case. This can be achieved by contacting all 3 credit agencies (Experian, Callcredit and Equifax) with a copy of the relevant certificate. In addition to contacting the agencies, it is advisable to ensure the original lenders are also contacted so they can amend their own records.
- Ensure any addresses contained within the report are accurate and that you have not been linked with addresses incorrectly. If you do see any incorrect links then you should contact the organisation that made the link in the report.
- A further element to consider as part of the process is to ensure that information relating to searches is accurate. You do not want more searches to be shown than necessary as this can cause concern for lenders, so if a party has conducted multiple searches for one application ensure that there are no duplicate searches listed. If there are then contact the organisation in question and have them remove the duplicates.
Many people are not aware that in addition to stating information supplied by lenders with regards to past credit history, you have the opportunity to add a statement of your own to your credit report. This is called a "Notice of Correction" and allows you to enter up to 200 words explaining the circumstances of the missed payments or overdrawn accounts etc.
Engaging in an active credit repair regime will give the best possible chance of obtaining credit as and when you need it.