W e can offer specific advice how to rebuild bad credit . T he following general information may help you better understand how credit ratings and credit records are determined. It does not constitute financial advice and you can contact us directly for further information , help and advi c e on the process of how to rebuild bad credit.
Bad Credit - Reasons why you may be being refused credit
How creditors determine to give or not to give credit
Lending companies and institutions use a number of different processes to decide whether or not to offer credit. If you have been told in the past you cannot have credit you can apply again, to the same company or a different one. It is important to understand that you have no right to be given credit and credit companies have no obligation to explain why credit has not been given (commonly known as having bad credit). However some companies may provide this information.
Bad Credit - Credit Scoring
Credit scoring works by awarding points for areas such as employment, wages, marital status and the area where you live. Credit is usually given if you score enough points. When applying for credit, it is a requirement for you to be told if this method is used.
If your application for credit has been turned down, you can request the main reason for this and for the determination to be looked at again by the credit company. You should provide to the credit company any extra information which you think is relevant.
Credit reference agencies
A credit reference agency compiles information on your financial status from county court judgments and High Court judgements (known as court decrees and Debt Arrangement Schemes (DAS) in Scotland), bankruptcy details, the electoral roll and records of payments from previous agreements. If you have a financial connection to other persons living at the same address they may be included in the payment record. If other persons are included in the payment record this may affect the decisions on whether or not to grant credit to you.
If your application for credit was denied due to information from credit reference agency records, you can request that the credit company let you know which credit reference agency was used. After finding this out you can then pay for a copy of the records from the credit agency.
If you find something on your record which is incorrect or misleading, e.g. persons on your file with which you have no financial relationship. You can also request to be considered as a separate individual even if you have some financial relationship with another person or persons. You should always remember you have no right to be granted credit.
The major credit reference agencies can be contacted as follows:
Equifax plc
Credit File Advice Centre
PO Box 1140
Bradford BD1 5US
UK
Tel: 0870 010 0583
Website: www.equifax.co.uk
Experian Limited
Consumer Credit Help Service
PO Box 8000
Nottingham NG80 7WF
UK
Tel: 0870 241 6212
Website: www.experian.co.uk
Call credit plc
Consumer Credit Services team
PO Box 491
Leeds LS3 1WZ
UK
Tel: 0870 060 1414
Website: www.callcredit.co.uk
You can also consider rebuilding your bad credit with Remortgages. See our form for free advice.
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