Turning Adverse Credit Into Good Credit

Even if your credit history is less than perfect, it doesn't have to stay that way. Credit repair offers a way to improve your credit status, and it's something that you can do yourself. Firms that offer credit repair services for exorbitant fees cannot do anything that you can't do yourself, and they certainly can't get CCJs removed from your record before the allotted time is up (no matter what they appear to be promising!).

Credit Report
If you want to turn your adverse credit into good credit, the first thing to do is to get a copy of your credit report from Experian, Equifax, Callcredit or all three. Each report will cost a small statutory fee (£2). Check your credit report carefully to make sure that all information is correct.

One thing that you can instantly do to improve your adverse credit status is to make sure that you are listed on the electoral roll. Just ask your local authority to add you, and the information will be updated on your credit record within 28 days. Most lenders like to see this because it verifies your current address.

Letter of Satisfaction
Check to see if details of CCJs and other adverse credit circumstances are correct. If you paid a judgement within a month, then it should not be on your credit record. Ask the court to make the necessary update. Similarly, if you have satisfied a CCJ, you can ask for a letter of satisfaction so that your credit record will show that you have paid up. If a bankruptcy order has been annulled or discharged, send the proof to the credit reference agencies. This is an important part of repairing adverse credit.

If your credit report still shows that you owe money on a credit account that you have settled, get in touch with the company and ask them to let the credit reference agencies know that you have paid up. You can also add a notice of correction to your credit file, to explain the reasons for missed payments. This can be useful if you are planning to apply for credit.

Other Credit Repair Actions
While checking erroneous entries is an important part of repairing adverse credit, there are other actions you can take as well. To start with, keep credit applications to a minimum. If you want to find out about a loan or credit card, get the information before making the application. Every application results in a credit search that stays on your credit report for 12 months. Repeated applications for credit will raise warning flags with credit companies, and you could end up being turned down. That won't help your credit report, either. If companies have conducted a credit search before an application is made, then you can apply to have the illegal search removed from your credit file.