Credit Rating

If you’ve had a default placed on your credit file it can affect your financial situation in a number of ways. The drop in credit rating makes it more difficult to obtain borrowing, and in some cases, it can even affect your employment.

If the information in your credit report is misleading in some way, or misrepresents you, and the credit reference agency isn’t able to remove or amend it, you’re entitled to use a Notice of Correction (NOC) to explain your situation.

Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to obtain a mortgage or other loan.

Your credit file is an important source of information for lenders and other financial institutions, and a bad credit rating can affect your life in a number of ways. Given that a default remains on your credit record for six years, it’s also a long-term issue.

The Rental Exchange scheme is a new initiative which allows tenants to have their monthly rental payment recorded on their credit file.

If your credit score has been affected by problem debt, you may be looking for ways to start rebuilding it and getting on with your financial future.

Knowing your credit score and keeping a regular eye on your credit file can prove incredibly beneficial if you wish to apply for a mortgage, credit card, loan or other type of credit. By checking your credit file you can identify any errors that could be standing in the way of you accessing the best deals.

A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer.

The introduction of Universal Credit was intended to simplify the benefits system and reduce the opportunity for fraud, but it has received much criticism, partly due to an inherent lack of flexibility.

When you look at your credit report, you’ll see various status codes marked against individual loans and other borrowing. These indicate the extent to which you’ve repaid your creditors, whether there were any defaults, and if the account has now been closed.

If you’re worried about the effect that your debt might have on the people you live with, it’s worth knowing that credit files are independent of each other unless there is, or has been in the past, a specific financial link such as a joint loan.

If you are currently working on reducing the amount of debt you have, improving your credit score may not be at the top of your agenda.