It’s incredible easy to get into credit problems. One missed payment, one default or one unopened letter could ruin your credit profile with a County court judgement or even worse bankruptcy or a home repossession.
A bad credit file will destroy your ability to get fair credit and will ruin so many different opportunities e.g renting. It is essential to spot a bad credit file and begin to make necessary steps to get your credit file looking better and your score higher.
In the UK, the information on your credit score stays on there for 6 years, this means any negative marks on your credit file will affect you for at least 6 years. Some information such as County court judgements are very important to third parties such as Lenders while other factors such as missed payment will be less relevant 12 months or so after they have happened. This is ofcourse very dependent on the lender.
Every credit file can be repaired and a better file opens the door to cheaper loans, insurance and so much more.
Your credit repair plan
Get your credit score for free via Huuti.
This will allow you to know what is damaging your credit file. We highlight the different factors such as CCJs, missed payments, high credit card balances or credit utilization etc It might also be worth getting your credit report from all 3 UK credit bureaus. Equifax, Callcredit and Experian. This is because they might hold different things on your credit file. If you spot any errors or discrepancies between what they all report then you should contact the relevant credit bureau and notify them. They will investigate the matter and look to make any changes needed as soon as possible.
Huuti will provide you a list of things that need repair but before you do this you should ensure everything on your credit file belongs to you or that there is nothing missing on your credit file. E.g A loan or credit card you had within the last 6 years which can positively boost your credit file if you made your monthly repayments on time. If there are any issues, dispute this with the lender and the credit bureaus.
Tackle your credit score to do list.
We will have highlighted what needs to be done in your credit plan to resurrect your score. This could be settling overdue accounts, getting a credit builder card, registering to vote, avoid not spending over 30% of your credit card allowance etc. Stick to your to do list and you will see your score grow.
Don't stick to it and well… you know how that goes already