Improve your credit report

Improving bad credit history is a slow and gradual process and can be achieved only after following a disciplined approach towards anything related to your finances. However, there are some ways in which you can filter out incorrect or misrepresented information on your credit report. Many a times lenders fail to report an activity by a customer to credit agencies. You should always keep an eye on such inaccuracies by consistently checking your credit report. Some steps to follow:

Get incorrect details removed

If you think any details are incorrect you should contact the organisation or lender concerned. The organisation will amend their records (if applicable) and tell all credit reference agencies of these changes. The agencies (Experian, Equifax and Callcredit) will then update the data they hold.

Get old defaults removed

Credit reporting agencies keep a record of defaulted accounts for six years from the date the lender decided you had broken the terms of the agreement (the ‘defaulted' date). The lender will have told you that the account was to be classed as being in default. The current balance on a defaulted account should show if payments have been made since the default, or if the account has now been fully paid.

Get 'other people' removed from your report

If other people who live in your home are recorded on your report, you can ask for these to be removed. All Credit Reference Agencies will make the necessary changes if you do not share a financial connection (such as a joint account, joint debt or joint tenancy) with that person. Please notify Equifax, CallCredit and Experian of changes you want to make.

Check if entries related to any county court judgements are correct

Judgments are kept on your report for six years from the date of issue. If it is paid, it can be updated to read as satisfied but will remain on your report. However, judgments paid within one month can be removed from your report. For county court judgments you will need to obtain a Certificate of Satisfaction from the court before we are able to update our records.

Add a notice of correction

While most online lending companies may not take this into account, it makes sense to add a correction notice to your default items. A Notice of Correction is a short (up to 200 words) explanatory note you can add to an entry on your credit report to explain the background to that information. Anyone searching your report in the future or who has seen it in the previous six months will see the Notice of Correction, and they must take account of it when you apply for credit.