Credit and Credit Repair
Your Credit File
Like all inventions it takes usually about 25 years for people to understand the evolvement of most significant things that are in their every day lives. Is Credit and Credit Repair an important aspect to take into consideration after you have entered bankruptcy, or been in a Debt Management Plan or Individual Voluntary arrangement. We think the answer to whether Credit and Credit repair is important is a distinct yes.
There are numerous generations today who don’t really know or understand the credit rating system. All they know is that there credit score is a number. If you don’t understand credit scores and Experian and Equifax reports and you have encountered difficulty with debt then you may need to seriously consider understanding exactly how you score and what identify what you can do to improve your score.
Say you are considering bankruptcy. This would actually be a perfect time for getting to grips with your credit report. It will always have to be you who makes the applications to the credit reference agencies to remove out of time or inaccurate entries that appear on your credit file.
There are a number of light alterations that you can make with the prompting of Experians Credit Repair facility. So in the months following a bankruptcy in the background your credit repair program is working and no doubt your score will improve during this period.
Remember that for the financial institutions who are making decisions about lending to people who have encountered difficulties. They are interested in people who are on their way back up opposed to people on their way down with debts.
Everybody has a credit file, maintained by a credit reference agency. Many people have adverse credit details on their files, such as defaults, bad payment history, County Court Judgments. This means that when these people apply for credit, such as loans, mortgages, credit cards, car finance or even a simple bank account, they may be turned away.
In this section:
- Credit Reference Agencies
- Been Refused Credit?
- Credit History
- Credit Repair
- Don’t expect miracles
- What about CCJs?
Credit Reference Agencies
Most people are unaware of credit information, credit files and credit reference agencies, yet they have increasing importance in today’s world. With the applicant’s consent, most lending sources will run a credit search by contacting the major credit reference agencies, such as Experian Limited or Equilfax Limited. The purpose of credit reference agencies is to hold files containing credit information, including information about you.
Been Refused Credit?
The truth is nobody is automatically entitled to credit. In order to be successful when applying for credit, it is necessary for you to prove to the lender that you are credit worthy. But this may be even more difficult if you have adverse credit information on your credit file which is left without repair. Without you realising it, lenders may be relying on out-of-date or incorrect entries, or entries which don’t tell the full story, or which shouldn’t in fairness have been put on your file in the first place, or even entries which relate to people with whom you don’t have a financial link.
As an individual and a consumer, you have rights to ensure that your files are fair and accurate. You can obtain a copy of your file and ask the credit reference agency or the lending institution to remove or correct wrong information. You can place your own explanation of your circumstances on your file so that lenders see the whole picture. Often people don’t realise that a simple step might give them the right to remove or correct an entry. The credit reference agency will tell you if there is anything you could do. Lenders don’t always act fairly in the way that resulted in an entry being made. The credit reference agency will tell you if there are grounds for challenging the entry with the lender. Sometimes a simple step like putting yourself on the electoral roll makes all the difference. Utilise your rights to repair your own credit history.
Credit repair is a process you can carry out yourself, and sometimes the steps you can take are simple, many people find credit repair a difficult and daunting procedure. Ask the credit reference agency for advice and guidance and make sure you are happy.
Don’t Expect Miracles
The credit reference agency will advise you how to remove an entry, but entries that are properly there can’t be removed, you may however be able to reduce their adverse effect. If a default or CCJ is properly registered and you owe the money, you will probably have to start to make some payment towards it if anything is going to be done to repair the
entry. The credit reference agency will explain the position with a notice of correction on the file. But if you can’t even make payments towards debts you accept you owe then you probably should wait until you can. The credit reference agencies will give free advice about your credit file.
CCJs can be repaired. If a CCJ wasn’t properly obtained, or you dispute the debt, or you have paid the judgment you can repair or even possibly remove the entry. Otherwise, you’ll have to make payments towards it to repair the entry.