Credit Tips

This Information is FREE and is supplied for Refinance UK Customers by Equifax PLC, who are one of the UK’s largest credit reference agencies.

For further advice or assistance, call us anytime Free phone: 0800 849 1000

Top Tips to Improve Your Credit Score

1. Ensure you are registered on the Electoral Roll.
2. If possible make more than the minimum payment every month. You will benefit by paying back your debt quicker, paying less in interest and you will build a positive payment history.
3. If you have paid your County Court Judgment make sure the settlement is recorded on your credit file. If not contact the court to get confirmation details and inform the credit reference agencies.
4. If you have been refused credit, obtain a copy of your credit rating. DO NOT carry on applying elsewhere. Each search by a lender will leave ‘footprints’ on your credit file and this may look like you are financially over stretching yourself.
5. If your circumstances have changed then say so. You can place a Notice of Correction on your credit file explaining your financial situation, which a lender will review when accessing any credit applications you make. For example if you were made redundant or have recently divorced and have fallen behind on credit repayments.
6. Avoid carrying a balance that is more than 30% of your credit limit (creditors may view it as excessive debt and that you may not be able to keep up with repayments).

Do you know credit fact from credit fiction?

Below are some credit myths which may surprise you...

1. True or false, there is no such thing as a credit blacklist?

True. Contrary to popular belief there is no such thing as a blacklist. If you are having problems obtaining credit it could well be because of your credit rating, not because you have been blacklisted.

2. True or false, the more credit cards I apply for the better my credit rating?

False. If you apply for too many credit agreements in a short period of time lenders may interpret this as over-stretching yourself financially and you may be declined credit as a result. More than one or two applications in six months may be looked at unfavourably.

3. True or false, the credit reference agency rejected my loan?

False. Credit Reference Agencies do not grant or refuse credit applications; it is the lender/creditor who decides this. Credit Reference Agencies simply provide the information on which lenders base their decision.

4. True or false, your postcode can affect your credit history?

False. Where you live does not affect your credit history.

5. True or false, you can add an explanation on your credit report to explain why you have credit problems?

True. If you have incurred defaults and are struggling with debt after a redundancy or divorce you can add a “Notice of Correction” on your file that allows you to explain your circumstances to the lender.

6. True or false, missed payments don’t show on your credit file after a year?

False. Don’t be complacent with missed payments, they will stay on your file for six years and are looked at unfavourably by most lenders.

Your credit report is available to be purchased online via www.equifax.co.uk