Credit Rating Advice

Poor Credit Rating

What is a 'credit rating'?
A credit rating is a score of financial reliability. It can be applied to an individual, a business or even an address - all based on information gathered about payment of previous loans, outstanding debts, income and other factors.

What is a credit reference agency?
A credit reference agency is an organisation that collects financial data. When an application for a credit card or any other type of financial product is made, a credit reference agency is consulted to assess the financial risk associated with an applicant.

How do I find out what my credit rating is?
You can contact credit reference agencies directly. A good place to start is Equifax. For an administration charge they will provide you with a copy of any financial information they may hold on you. You can use this information to better understand the responses banks and credit card companies give you.

How do I fix a poor credit rating?
The first thing to do is ensure that you are paying any existing debts off on time and without problems. If you have a regular income, make sure this shows up in your bank account. Pay wages into a main account to illustrate to potential lenders that you have a reliable income.

If you need finance immediately, there are companies that will take customers with a poor credit rating. However, many of them charge high rates of interest and require any debt to be secured against your home. Choose carefully when applying for finance with a poor credit rating.

Important Links
If you have problems with a poor credit rating and wish to seek independent advice try your local Citizen's Advice Bureau.
If you would like to find out about your rights and the way financial businesses are governed, visit the Financial Services Authority.
For a quick and easy way to find out what's on file about you - try CheckMyFile.com