improve-your-credit-rating money features Virgin Media
Luckily, improving your credit rating needn't be hard - you can make a difference in just a week with seven simple steps.
Lenders use the electoral register to check that you are who you say you are and live where you say you live. If you aren't on the electoral register or you are listed at an old address, you could be marked down, asked for proof of identity or even rejected.
Go to AboutMyVote.co.uk for a registration form and advice. You can add your name to your local register at any time, so do it as soon as you change address.
This is a record of the credit you've taken out, your repayment history and any court judgments against you, plus other information relevant to your ability to repay what you borrow. Lenders look at it when you apply to them for credit to help them decide whether to make you an offer and what terms to set - for example, what interest to charge.
If your credit report isn't up to date or doesn't accurately reflect your circumstances, it could have a negative effect on your credit rating. If you find anything on your report that needs changing, let the credit reference agency know straight away.
If the record is accurate you can't change it, but you can make sure that any missed payments are not held against you by paying on time and settling any outstanding debts or CCJs, which will minimise their affect on your rating. Get a free copy of your credit report.
Every time you apply for credit, the lender will check your credit report - and leave a search footprint. You'll get marked down if you have lots of searches, because lenders fear that you are over-stretched or even that a fraud is being planned, so watch out.
If all you want is a quote, don't make a full credit application; ask for a quotation search instead, which will leave a footprint that does not affect your rating.
If a lender has mistakenly searched your report more than once in response to a single credit application then contact the lender, explain what has gone wrong and ask for the extra footprints to be removed.
