How to Improve Your Credit Rating in Less Than 40 Steps

How To Obtain Your Credit File
and
Repair Credit Problems
by Creditplus

Contents
1.0 Introduction
2.0 How To Get Copies Of your Credit File
2.1 Agency Addresses
2.2 Sample Letter
3.0 Understanding Your Credit File
3.1 Negative Entries
3.2 Positive Entries
4.0 How to Improve Your Chances of
Getting Credit
5.0 A Guide to Cleaning Up Your Credit History
5.1 Sample Letter
5.2 Default Notices
5.3 How To Remove Searches
5.4 How To Remove CCJs
5.5 The Affidavit
6.0 Credit Scoring and Finance Applications
6.1 Top Reasons Why Your Credit Score
Might Be Low
7.0 Frequently Asked Questions

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Copyright © Whichdeal Limited
Whenever you try to obtain credit the company that are potentially going to lend you
money will always check your credit file. What they find on your credit file will be the
details that make up your credit rating and ultimately determine whether or not they
will offer you the credit line that you are applying for.
When you have a good credit file you will often have a wider choice of where you
wish to obtain credit from. When you make an application you will be highly likely to
be accepted without any issues. However, if you have a credit file that has a history
of negative issues such as miss-payments, defaults, CCJs and other problems, it
can be hard to know what to do next. Each month at Creditplus we have customers
that struggle to obtain credit for a car. We know from our own customers experience
that it can be distressing to find out that your credit file has issues, some of which
you may not even be aware of.
We have created this guide to aid anyone who is struggling to obtain credit to start
the journey of repairing their credit file. All of the key information you need is
included in this one report. There is no need to go off and use an independent
company that will charge a small fortune while making false promises about how
they will improve your credit file.
Within this guide we will provide you with vital information such as:
• Where to obtain copies of your credit file (including sample letters)
• How much your credit file will cost
• How to understand your credit file
• What counts as positive and negative points on your credit file
• What you can do to improve your credit profile
• How to clean your profile so it accurately represents your credit history
• How credit scoring works and which areas hold the most weight
• Many frequently asked question about credit ratings
1.0 Introduction
Did you know…You can improve your credit rating

It can be difficult to understand your credit file and to make sure everything within
your file is correct. This can become even more difficult when you miss payments or
other negative issues appear on the report. This guide has been created to
ensure that you can quickly navigate your way through the potential minefield of
credit, credit files and credit scores.
The most important thing that you need to know is what is in your credit file and
how you can improve it if needs be. To do this you need to obtain a copy of your
file, which you are legally entitled to. These credit files are held by credit reference
agencies, and the main agencies are called Equifax, Experian and CallCredit. The
great news is that it only costs £2 to receive a copy of your report, and the money
simply covers the cost of the paperwork and administration from each agency.
These agencies will not give you this information over the phone, so you need to
write a letter to receive a copy of your file. This document should quote your full
forename and surname, your date of birth and (this is very important) full addresses
for everywhere you have lived in the last six years (addresses must include your
postcodes). If you have forgotten any of your addresses the Royal Mail website
has a useful postcode finder tool which can help you which you can find on their
website (www.royalmail.co.uk). Write the letter (the template example can be found
on the next page) and include a postal order or a cheque for £2 (made payable to
the company you’re writing to). Your credit file should arrive shortly after.
Alternatively, you can apply and even view your file online if you like, which can save
a lot of time. You need all the same information, however you simply need to visit
the following web pages:
http://www.equifax.co.uk/Products/credit/statutory-report.html#
http://www.experian.co.uk/consumer/statutory-report.html
https://www.callcredit.co.uk/stat-report-online/
If you are married, it is recommended that you send separate documents and you
will need to pay separately as well. This is recommended because it may still be
possible that one of you has bad / inaccurate information on their file, whereas the
other may still have a good credit profile and be able to obtain credit at a good level!
2.0 How to Get Copies Of
Your Credit File
Did you know…You can obtain a free copy of your credit rating

2.1 Here are the addresses of the respective agencies:
Experian Ltd,
PO BOX 8000,
Nottingham
NG1 5GX
For convenience, you can also apply online at:
www.experian.co.uk/consumer/orderPaperReport.html
Equifax PLC,
Credit File Advice Centre,
Box 1140,
Bradford
BD1 5US
Their website can be found at:
www.equifax.co.uk
Consumer Services
Callcredit Limited
PO Box 491
Leeds
LS3 1WZ
Callcredit’s website can be found at:
www.callcredit.co.uk
Did you know…We have provided sample letters in this report

2.2 SAMPLE LETTER
YOUR NAME
YOUR ADDRESS
TOWN
COUNTY
POSTCODE
Experian Ltd,
PO BOX 8000,
Nottingham
NG1 5GX
To whom it may concern,
Under Section 158(1) of the Consumer Credit Act 1974, I am writing to request a
statutory copy of my credit file. To cover these costs, please find enclosed a postal
order for £2.00.
My name is FORENAME (MIDDLE NAME) SURNAME and my date of birth is the
00th MONTH YEAR. My current address and all my addresses for the last six years
are below:
ADDRESS ONE, TOWN, POSTCODE – May 2011 to Present
ADDRESS TWO, TOWN, POSTCODE – May 2010 to May 2012
ADDRESS THREE, TOWN, POSTCODE – May 2005 to May 2010
Yours Faithfully,
YOUR NAME
Did you know…Whenever you apply for credit your file will be
checked

Whenever you request credit, be it from a high-street shop, a loan company or credit
card company, they will run a credit check with one or more credit agencies that hold
your credit information.
Please Note: Every UK resident over the age of 16 years will have a credit file. This
credit file is completely legal and can not be opted out of. The credit file will hold
information about your credit history. This information will then be used to determine
whether credit will be offered and the rate of interest.
Depending on the company you have applied to for credit and the information about
your previous credit history, there may be times when your credit request is
rejected. In this case, it is possible to ask the company to release information on
which agency issued the credit information to them. In the UK, the agency that has
been checked would generally either be Equifax, Experian or CallCredit.
If you would like to know which Credit Agency has been contacted when you made
an application for finance, the company that you approached to borrow money from
legally has to tell you which agency they checked with. Below is a sample letter that
you can use to contact a company to identify the credit agency which your records
have been checked against:
SAMPLE LETTER:
Dear (COMPANY NAME)
Under Section 157 of the Consumer Credit Act 1974, I am writing to request the
name and address of any credit reference agency which has issued you information
about me. I request that you reply within the next seven working days upon receipt
of this letter.
Yours Faithfully
YOUR NAME
Did you know…You can not opt out of having a credit file

Usually the main credit agencies will hold the same or very similar information as
each other. They also regularly share their information to ensure that all credit
agencies offer the best possible level of detail about the credit history of an
individual. There is a possibility, however, that their files will not match, due to them
holding different databases. Building societies, banks and other finance houses are
also offered a similar service from the credit agencies to ensure they can make
sensible decisions about their customers and who they offer credit to.
All information held by these agencies, both good and bad, is deleted after a
period of 6 years. Even if the relevant debt is cleared, CCJs are held for a six-year
period, due to lenders being interested in a rounded credit history of the customer,
and would want to know of any recent reasons why the borrower may have failed to
pay back their debt.
Typical details that may be held would include:
• Your name
• Your address
• How long you have been at your current address
• Your date of birth
• All known credit transactions
• Lender details
• Repayment details
• Your account’s current status
• Any other information related to previous borrowing
• Voter’s electoral information
• Known aliases
• Financial linked associates
• Recent credit searches
You are free to obtain this information. There should not be any additional
information about you either so you should carefully check what is on your file.
Did you know…Each credit agency will hold slightly different
information about you

An area that many consumers are unaware of when applying for credit is that a
large number of searches (or inquiries) can have an adverse impact on your credit
score. This is more likely when you have had a borrowing requested declined. As
each time you make a borrowing request to a lender it is recorded, lenders that you
apply to in the future will be able to see the information. They won’t be able to see
the lender’s names, but will see the date and type of search.
Another point to keep in mind is that having too many credit searches can affect the
way that lenders view your credit profile. If you are simply shopping around for a
quote to see if credit is affordable it is sensible only to apply to one or two lenders.
Some people will get very anxious about credit searches, but they are normal and
will not impact you too much as long as you are sensible with the amount that you
have conducted on your file.
If you are not serious about obtaining credit then it is best not to have a credit
search conducted. However, you will always have a credit search on your file when
you do apply so do not be afraid of this process.
If you have been rejected three or four times we would recommend that you stop
applying for credit and following some of the steps in this guide to obtain and repair
any negative issues that may be on your file.
Did you know…The information on your credit file will be removed
after six years

When you receive your credit profile you will see both the positive and negative
entries that are listed. There may be terms on your file that you do not understand.
The list of terms below explains each of these to make sure you have a clear
understanding of different points on your credit file that could be affecting your credit
rating.
3.1 Negative Entries
Missed Payments
When you miss a payment it will be recorded on your credit file. Often missing
payments will harm your credit file and may mean that you will struggle to obtain
credit at a later date. Even if you just miss the odd payment, when you do get
accepted for a loan you may find that the rates are higher than expected, as you are
now perceived as being a higher risk to the lender. Recent missed payments have
much greater negative impact than historic ones. Current arrears have maximum
negative effect.
Defaults
If you have missed multiple payments on a credit agreement it may result in a
“default”. If you default on a credit agreement the company that lent you the money
will send the record of the default to the various credit agencies and they will be
placed on your credit file. The payment profile will then stop and only the balance is
updated - This stays on your file for 6 years.
County Court Judgements (CCJs)
CCJ stands for County Court Judgements, this is the term used when you have
been taken to court for failure to pay back money you owe. Unfortunately CCJs will
negatively affect your credit file and you will struggle to borrow money from prime or
near prime lenders. A CCJ will stay on your credit profile for 6 years and will
seriously harm your ability to obtain credit. If you pay the money owed within one
month of the of the court issue you will be able to have the CCJ removed from your
file, but in order to do this, you will need a Certificate of Satisfaction. If you pay the
amount AFTER one month, it will be shown on your file as settled (if the above
certificate is issued) for six years. Even though it is settled, lenders will see any
CCJs on your credit file as a negative entry and it can impact future credit requests.
3.0 Understanding Your
Credit File
Did you know…Negative points on your file will affect the rate you
can borrow at

Bankruptcy
If you become bankrupt you will struggle to obtain finance. Again, this information is
held for 6 years by the credit agencies. There are ways to get this removed though.
If your bankruptcy order is “annulled” or withdrawn, you can send a copy of the
certificate you will have been issued to the credit agencies. If your bankruptcy order
ends, you must send a copy of the discharge certificate, and the agencies will also
update their files.
C.I.F.A.S.
This stands for Credit Industry Fraud Avoidance System, and any CIFAS entry on
your file is bad. CIFAS registers different types of fraud, such as false names, stolen
credit cards and false applications. When there is a CIFAS entry, it means lenders
will take extra care to ensure that the application is genuine, though unfortunately
sometimes the application will just be rejected, even if it is legitimate. One reason
for this, for example, would be if your address has been used for fraudulent activity
in the past. The credit referencing agency should be written to, requesting all the
details of a CIFAS entry if this is the case.
IVA
IVA stands for Individual Voluntary Arrangement and is used by an individual to
come to a deal with a lender to avoid declaring themselves bankrupt. An Iva is a
legally binding contract, which stays on your file for six years. Essentially, they
allow you to consolidate your debt into a single monthly payment. There are major
benefits to an individual to enter an IVA as often they will be able to reduce their total
amount of debt by up to 75%, leaving the individual to pay off the balance within 3 to
5 years. Lenders will not look at an IVA in a positive light, and individuals will
struggle to obtain credit until this is removed from their credit file.
Did you know…Being on the electoral roll is vital to borrow money

3.2 Positive Entries
Subscriber Supplied Information / Credit Account Information
Usually when you have a line of credit the history of that credit will be detailed on
your credit file. Each credit account that you have will be listed individually, although
it is possible that not all of your accounts are listed.
The credit will be represented by a row of 12 numbers. Each of the 12 numbers
represents a month of the last rolling year. The number shown will represent
whether or not you have made payments on time. They also show if payments are
made late, how late they are and if you have defaulted (this will be represented with
a D not a number). Below is an example...
0 0 2 1 1 2 2 3 2 2 1 0
In the example above shows the account holder was 2 months behind, 3 months
ago, and 2 months behind, 6 months ago, etc. A well looked-after account would
generally be filled with only 0’s and the occasional 1 (if you were late one month). If
you have all 0’s it means you’ve kept up with all of your payments for the last year.
This is a very good signal for lenders as it shows that the person has the ability to
manage their finances well. This makes them a lower risk when it comes to lending
them money in the future.
Here is a summary of what the codes mean:
0 – Payments are up to date
1 – In arrears by one payment
2 – In arrears by two payments
3 – In arrears by three payments
4 – In arrears by four payments
5 – In arrears by five payments
6 – In arrears by six payments
D – Account defaulted. This often means the account has been closed or legal
action has been taken and the lender has formally asked for all the funds back.
Did you know…You can challenge any incorrect information on your
credit file

You will also be able to see a summary of the last 36 months, where the Defaults
would generally be shown.
Electoral Roll Information
This is a very important factor and is usually understated by most consumers.
Traceability is incredibly important to all lenders as it shows that you are happy to
prove where you are living. The electoral roll is a list of all of the people who have
registered at their current address and have the right to vote for elections.
The electoral roll is generally prepared every February, so if you miss the date, it’s
a good idea to contact your local authority and get your details added. This can
then be added to your credit file. If you are not on the roll, it may prompt lenders to
question why, and will cause problems with credit applications. Lenders like to see
a consistent address history as it means if anything were to go wrong and you don’t
pay back the credit, the lender would know your current address.
Did you know…You should inform your lender if you’re struggling
with payments

Please note the steps you can take to improve your ability to get good credit:
Check your credit report - People that know exactly the state of their credit file will
be at a massive advantage when applying for credit. If you are unsure of what is on
your credit file make sure you get a copy of your file now. If nothing else it will
ensure there is nothing on there that shouldn’t be and that needs to be challenged.
Check if you are on the Electoral Roll - If you’re not, get on it. It will definitely help
in the long run as lenders want to know where you have been living (also known as
traceability).
Get a Discharge Certificate – If you have been bankrupt in the past, but your
bankruptcy has ended, make sure you inform the credit agencies. Send them the
discharge certificate or annulment and ensure that they update your file.
Get a Certificate of Satisfaction - It costs just £10 to get a Certificate of
Satisfaction from a court. If you’ve paid a Judgement and it hasn’t updated to say
“Settled” on your file, you should contact the court and request one immediately.
Inform the Lenders if you are in trouble - If you are struggling to make payments
on time make sure that you inform the relevant lender or credit provider. These
companies will look favourably on people who communicate with them when they
are struggling. Some lenders or credit providers may even be able to offer options to
help you manage your debt. Do not just ignore that fact that you are struggling as it
will make things harder for you in the future.
If you can make the payments, do! It goes without saying that making payments on
time is the most beneficial thing you can do.
Challenge Incorrect Files - If all your payments have already been made and you
have always been up to date, but your file does not reflect this, contact the
companies involved and they can make arrangements to change your file to reflect
this.
4.0 How to Improve Your
Chances of Getting Credit
Did you know…Every time you apply for credit a search will be
recorded on your file

5.0 A Guide to Cleaning Up
Your Credit History
The next section will help you to make sure you can clean up your credit file so you
have the best possible chance of obtaining credit in the future. Below are some
important points that you should follow in order to make sure that your credit history
is accurate and as positive as possible.
After 6 years it is normally your legal right to have information removed from your
credit file. This is not always done automatically for you so make sure you write to
the credit agencies and request that it is completed.
If you feel that an entry on your report needs explaining in more detail, you can file a
Notice of Correction. This should be no more than 200 words, and must be correct
and relevant to the entry you are writing to correct. Some good reasons to change
an entry would be losing a job or suffering from a long-term sickness. However,
some lenders will still reject applications with a correction stated.
5.1 SAMPLE LETTER
Dear (Agency)
REFERENCE NUMBER
Thank you for sending me my report dated 00.00.00, Please add the following
correction to my file.
NOTICE OF CORRECTION
I, YOUR NAME of YOUR ADDRESS would like it to be known that the judgement
recorded against me for £XXX refers to a payment I was unable to make due to
being made redundant in 2010. I gained employment again in 2011 and paid the bill
in question. Please amend my file for anybody searching it to take these facts into
account.
Faithfully,
YOUR NAME
Did you know…No one can guarantee that a CCJ will be removed
from your file

Please note: you will need to fill in the details that are relevant to your personal
situation.
The new information that you provide will need to be updated on your file. An
update will also be sent to any lender who has requested your information in the
past 6 months.
If the notice of correction relates to a county court judgement or sheriff court decree,
the agency will pass it to Registry Trust Limited, who will pass it to the credit
reference agency. If the notice refers to information other than a judgement or
decree, you should check if the agency has the same information, and if so, send it
the notice of correction.
The agency has 28 days to reply to your letter. If it doesn’t, you can ask the Data
Protection Commissioner to intervene. There is a possibility that an agency might
decline to add the notice to your file. In this case, it must refer the matter to the
Data Protection Commissioner for a decision.
Sometimes your file may be mixed up with someone with the same name living at
the same address as you. If you believe this is the case then you can request a
notice of disassociation from the credit reference agency. You will be sent a form
which you will have to sign and return. Once this has been received by the agency
the record will then be deleted from your file. If the agency refuses to make a valid
change you can go to the Data Protection Commissioner to look into the case.
5.2 Default Notices
You should check your file for any notices of Defaults. If you have any then you
should use the information provided below with the sample letter below to write to
the finance companies that have issued the defaults against you, at this point you
should try to settle the default.
A default is a record sent to the credit reference agencies from banks, building
societies or other financial institutions, detailing things such as missed payments on
Did you know…An ‘Affidavit’ is vital if you want a CCJ ‘set aside’

a credit agreement.
They are not in the public domain (unlike County Court Judgements); they are only
held in the credit agency records and are designed to alert other finance companies
that you have defaulted on a previously agreed credit agreement. As such, they are
viewed as important information for lenders who will use the information to make
future decisions.
The only way to remove a default is by contacting the organisation who served the
notice of the default in the first place. Looking through your file, you will be able to
tell who placed the notice. Once you have this information you can set about
contacting them and coming to an agreement. They may be able to remove the
notice in any of these situations:
• The default notice was served but the payments were then brought up to date.
• The loan has now been fully repaid.
• The payments are still in default but an arrangement has been made with the
company in question.
• You think the notice has been placed on your file incorrectly.
SAMPLE LETTER:
Dear Sir/Madam
I am writing regarding a record which has been placed on my file concerning a debt
that I owed to you. If this debt has now been repaid or settled, please write and con-
firm this so that I am able to clear my name with the credit reference agency. If the
debt has not been settled, please write with the details of what you would require to
settle the outstanding debt.
The loan was taken out on the DATE HERE and my account number is NUMBER
HERE.
Yours faithfully,
YOUR NAME
Did you know…Each lender will have their own lending criteria

Provide the finance company with as much information as you can. The more you
provide them with the easier it will be for them to help you. For example, if you took
out the loan at an old address, include those details, along with the details of your
new address. If the finance company mention that you are still in debt with them,
and gave a repayment date, it is worth writing back to them stating that you will only
do this if they are prepared to write a letter asking that the default notice is removed
from your report.
Many large organisations are not good at keeping paper work and this can
sometimes be an advantage you. Write to the lender to request a copy of the
original signed agreement for the debt. If they can’t do this you have the right to
request that they remove the default from your report, due to them having no signed
agreement regarding the debt.
5.3 How to Remove Searches
Whenever you apply for finance or credit the lender will search your credit file to
ascertain the level of risk associated to you. This search will be recorded on your
credit file. Too many searches may make you look ‘credit hungry’ and this will
adversely affect your credit file. If you have had searches conducted that you did not
authorise you will want to have these searches removed to ensure it does not
damage your file.
To remove these searches you will need to write to the people who requested the
searches originally, and ask them to provide written proof that you authorised the
search. If they can not provide this proof, can ask them to remove the search in
question.
5.4 How to Remove CCJs
The first thing that you need to be careful of when looking to get a CCJ removed is
any company that promises they can have CCJs removed from your file. No
company can guarantee this, and most will only undertake the same instructions
that we have listed below for you.
Did you know…Having a bank account will help you when applying
for credit

Write to the court to request all information they hold against you in regards to any
judgements which have been made.
To remove judgements, you must use an N244 form. An example is included
below. It’s worth noting that some courts require that you use original forms, which
are available free of charge from the courts.
Many people do not realise that a surprising amount of CCJs are the result of an
undefended summons. These cases usually arise because the defendant does
nothing, as they do not know what response to give. The court then enters a
“Judgement by Default”, which is passed through The Central Registry to the credit
agencies. Even if the debt is paid off, the judgement would stay on the record if
nobody has asked for it to be “set aside”.
If you dispute the debt, have paid the judgement or if you believe the CCJ wasn’t
properly obtained, it is possible to repair or even remove the entry from your file.
Otherwise you will have to pay to repair it.
As an example, the courts would look favourably on the defendant having been
making payments regularly for a year or so. Below we have listed other reasons to
get judgements put aside. If you use these reasons keep them as clear and concise
as possible:
• Were you given 28 days notice in order to pay the bills/debts?
• Were you living at the address when the summons and judgements took place?
• If you took out a loan for any form of credit were you in receipt of the Default
Notice before receiving the summons?
• Did you receive the summons? (They are not sent by recorded mail)
• Maybe you were unable to attend court and defend yourself.
• The judgement should not appear on the credit files if it was paid within 28 days.
• If you agreed to settle “out of court” you should not have received a judgement.
• If you did not receive any notification of the judgement(s) made against you, you
can appeal.
• Did you agree with the full amount of the judgement at the time, but now only
Did you know…Steady address history will help you when applying
for credit

agree with part of it?
• Was the summons taken out against both yourself and another person jointly? If
so, did you both receive your summons?
• It could have been that you were away from the time between the issue of the
summons and entry of the judgement.
• Did you receive the summons on time for you to apply to the court? You have 21
days to reply to the court. If the summons was 21 days late then the judgement
would have already been taken out against you.
Before doing this, you will need a few things:
1. The original summons
2. The name of the plaintiff (who took out the summons)
3. The name of the court
4. The Case Number
That last point is very important. Without the Case Number, courts will not even
read an application. If you don’t have it for any reason, you can write to the central
registry and ask for the details. This will cost £15.00.
The address you need to write to is listed below:
Registry of Court Judgements
Registry Trust Ltd
173/174, Cleveland Street
London
WP1 5PE
Did you know…Even with a CCJ or default you may still get a loan

Below is an example of the N244 Notice of Application form. As previously
mentioned, some courts require original forms to be completed, which you can
request from the courts.
SAMPLE FORM
Plaintiff / Defendant’s Address
YOUR NAME
YOUR ADDRESS
YOUR TOWN
YOUR COUNTY
YOUR POST CODE
State nature and grounds of application to be set aside…
I wish to apply for…
The reason being that (I did not receive the summons/wasn’t given enough time,
etc…)
Signed: ………………………………….
Sign Here: ………………………………
Dated: ….. ../ ……./20……
Address for service
Your Address: …………………………………………………………
…………………………………………………………
Did you know…Being a home owner will help your credit rating

5.5 The Affidavit
This next part, “The Affidavit” is essential if you are to make the court believe that
the request is genuine. Without one, you are likely to be declined in your request
unless you have a very sympathetic court.
Type or hand-write (with black pen in block-capitals) the defendant (you) and court
details onto the form N244 as you see above.
Enter the reasons to “set aside” the judgement. The main aim here is for it to make
sense. No legal jargon is necessary, other than after “I wish to apply for…” you fol-
low it with “Judgement to be set aside on the following grounds.” It is here that you
list your reasons.
Take both the Affidavit and N244 form to a solicitor’s office, and ask to see a solicitor
for “a Statutory Declaration”. In front of the solicitor you will swear to the truth of the
statement on the “Notice of Appeal”. You will “Make an Oath” that the statement is
true. You will then need to sign it in front of the solicitor. They will then sign and rub-
ber stamp it.
You will be charged the standard £5 fee, which has the advantage of showing the
court you are willing to go to the effort to clear your record.
On the Affidavit, only fill in your details and the court details. The bottom section is
for the solicitor you visit to fill in.
The Affidavit, when “Notarised” by a solicitor and combined with the form N244 they
become an official legal document, accepted as genuine and truthful by the courts.
Without these, the request wouldn’t be so much as looked at, let alone processed.
Once both documents have been signed, staple them together and send them first
class to the court concerned. Make sure it is addressed to “The Chief Clerk”.
Did you know…Affordability is important when applying for a loan

Once the court has received your request, they may ask you to be present for the
hearing. If you can’t make it, write to the court to tell them you cannot be there, and
that you will be happy to abide by whatever decision the court makes without you
there. It is highly likely the court will look upon this favourably, as it both saves them
some time and shows sincerity from yourself. Whenever you are writing to the court,
remember to add the Case Number.
After a few days you should receive notice from the court of your “set aside.”
On the following page you will find a sample of how the Affidavit should look.
Did you know…If one lender rejects your application another may
still accept it

SAMPLE FORM:
AFFIDAVIT No 1
Sworn on ………… 20 ……..
Filed on behalf of the Defendant.
In the …………………. County Court Case No. ………………….
BETWEEN
………………………………………… PLAINTIFF
AND
………………………………………… DEFENDANT
I (Name)
Of (Address)
MAKE OATH and say as follows:
I AM the Defendant herein
THE written contents of Notice of Application Form N244 annexed hereto are true.
I THEREFORE ask this Honourable Court to grant my request for judgement in the
above case to be set aside.
SWORN at
This day of …………….. 20 ………
Before me, a solicitor empowered to administer oaths.
Did you know… Too many credit applications will reduce your credit
rating

Once you have had it confirmed that the judgement has been “Set Aside”, you can
write to the credit reference agencies requesting removal of the CCJs from your file.
The following letter can be used for removing both CCJs and Default Notices. If you
only need one or the other to be removed then delete as appropriate. Give them as
much information as possible. The credit reference agencies are legally obligated to
update your file as soon as possible.
SAMPLE LETTER
Experian Ltd,
PO BOX 8000,
Nottingham
NG1 5GX
Date: …………………….
Dear Sir / Madam
I have enclosed confirmation from the county court that the enclosed judgement has
been set aside. Please remove this judgement from my file immediately.
I also enclose a letter from FINANCE COMPANY NAME stating that the loan from
them has now been repaid in full and that they are prepared to have the default in
my file removed. Please also remove this immediately. Once you have carried out
the above, please write and confirm this as soon as possible.
I look forward to hearing your reply.
Best regards,
YOUR NAME
By analysing your credit file a lender will usually rate or score your file according to
Did you know… You can improve your credit rating

their lending criteria. A lender will then use the information found in your credit file to
determine whether or not you are the type of customer they want to lend money to.
It will also determine the likely interest rates that you will be offered by working out if
the associated risk involved is high or low. The higher the score, the lower your risk
you pose to a lender.
Here are some useful points that could influence the lending decision:
1. The Lenders have their Own Criteria - Though all lenders refer to the credit
referencing agencies (usually Experian or Equifax), it is always the lender’s
decision whether or not you get accepted for credit. All lenders have their own
rules, and their own standards as to what credit score is acceptable.
2. You Credit History is Vital - Your past credit history is an important part of your
credit record. If your payments are up to date, and none have been missed, your
score will be higher.
3. It is Vital to be on the Electoral Roll / Voters Role - Any application is likely
to be hampered if you are not on the electoral roll. As mentioned earlier in this
guide, the roll is updated towards the end of the year and published in February,
so get on it as soon as you can.
4. Length of Current Employment – The longer you have worked for your
employer the better it will look on your credit file. This shows stability in your
earning and also shows that you are unlikely to suddenly not be able to pay back
any loans.
5. Length of Address History - Your credit score will be higher if you have lived at
your current address for 3 years or longer. It will also be a benefit if you have a
mortgage or if you own your own property.
6. Bank Accounts – The longer you have banked with the same bank the more
beneficial it will be to you. Also if you have managed any overdrafts well you are
more likely to obtain a good loan rate.
7. Number of Searches - As previously mentioned in more detail, each and every
search on your file is recorded. If you have applied for many cases of finance, it
could make a negative impact on your credit score.
8. Not All Lenders are the Same - Even though your information stays the same,
each lender will have their own criteria. Therefore, your application may be
refused by one lender, but accepted by another.
6.0 Credit Scoring and
Finance Applications
Did you know… You can obtain a free copy of your credit rating

9. You May Still get a Loan with CCJs - Not everybody will reject you if you have
CCJs in the past year. However, it will lower your score and limit your ability to
get good rates.
Check Your Credit Score.
It is likely that whenever you apply for credit you will be faced with a similar set
of questions. These questions will have a certain score attached to them, and
generally the weighting of these questions will vary slightly from lender-to-lender.
The most common questions include details of your personal information, home
address, job and address, salary, number of dependants, etc…
It is possible that some lenders will ask questions others won’t deem important.
Therefore it is possible that if you are turned down by one company that another will
accept you. You also shouldn’t assume that multiple lenders have all rejected you for
the same reasons.
6.1 The Top Reasons Why Your Credit Score is Low
Please Note: Depending on the lender the importance of each of these points will be
weighted differently.
You have a bad history of paying back credit
Your history of paying back borrowed credit can account for 35 – 75% of your credit
score. Don’t be fooled into thinking it is only larger problems such as CCJs or
defaults that will have a negative impact. Anything from missed payments, going
over your agreed overdraft, too many credit searches, or even the lack of monthly
affordability can have a negative impact. Whilst negative entries will stay on your file
for 6 years, the impact of missed and late payments diminishes over time. If your
payments have been on time over the last 48 months, the late, older payments will
have no impact on your score.
You are not on the Electoral Roll
If you are not on the electoral roll at the address on the application there is a high
probability you will be rejected.
You have lived at your current address for less than 3 years
Did you know… We have provided sample letters in this report

If you are a tenant and move house frequently, it will start to impact your credit
score. This is because lenders like to see stability in your life if they are going to
trust you with their money. Even if you have only moved a couple of times in the last
few years your credit rating will start to drop. If you are a home owner the impact
will be lower. If you have been at your current address for less than 6 months, your
score will be affected.
New Job
Employment is another area that lenders like to see stability. If you have been in a
stable job for many years, you will be looked at far more favourably than
someone who changes their job every few months. Ideally, if you are changing
jobs, you should hold off on applying for credit for a few months. Also, if you’re in
a probationary period, this can also result in a decline. This is not such an issue if
your salary is increasing. Any reasons you have for changing jobs should be noted
and included in the application (such as freelance employment, transfer within
same company or promotions). Having a job for a number of years, though, is what
will give you the better score. There is a chance the lender will ask to see the last
couple of months of pay slips as part of the application, so keep these somewhere
handy. It goes without saying that bouts of unemployment can adversely affect your
credit score.
If your profession requires you to move around and change jobs regularly
(freelancers, artists, photographers, supply teachers, etc) it is worth writing this
down and including it in the application.
Income / Affordability
Whenever you make a finance application you will be asked for your salary or
monthly net wage. Lenders need to know how much income you have each month
as they will calculate whether they think you are able to afford the re-payments. As
a rough rule of thumb, as long as your loan repayments are under a quarter of your
monthly net wage, the lenders will be satisfied you can afford the loan. However, this
will depend on any other fixed costs you have such as other loans and mortgages.
Lenders will also want to ensure the source you get the income from is steady and
the amount you earn is consistent.
No Bank Account / New Bank Account
Did you know… Whenever you apply for credit your file will be
checked

As mentioned previously in this guide, it is very important to have a bank account.
Ideally you will have held this bank account for a number of years. This will get you
the best credit score, having a new account will lower your score. Not having an
account at all will be very detrimental to your application, so it is recommended you
open an account as soon as possible.
Too Many Credit Applications
Making an application every few months shouldn’t impact your credit score too
badly, but, anything more will begin to reduce your score. If you have made a
number of refused applications, try not to make any new ones for six months. This
gives space before applying again and room for you to review your credit file and
find ways to improve it.
Remember - EVERY application and search on your file is recorded if it’s run by a
lender. Some brokers (including Creditplus) run a “soft” search, which other lenders
will not see.
Filling In The Application Form
When you apply for finance it is vital that you complete each of the sections
accurately with honest information. There is no point trying to amend any of the
information as lenders will run many different checks and you will be caught out.
Sometime it might even be worth adding some additional information if you think it’s
relevant. This may help to make sure your application is dealt with efficiently. Also
bear in mind that it is possible for perfectly responsible applicants to be rejected,
simply because they don’t fit the lender’s profile of their “ideal” borrower.
Clearly Complete Your Application
If you can, make sure you type up your application as it will generally be clearer to
read and will be more presentable than a hand-written document. If you cannot type
it, make sure your hand-writing is clean, presentable and always use block capitals.
Owning Your Own Home
Did you know… You can not opt out of having a credit file

If you own your own home, or are paying a mortgage to own your own home,
lenders will look upon you favourably. This is because is shows that you are
responsible with money and that you are financially committed to an area.
Therefore you are unlikely to move away suddenly to avoid paying back any debt.
Dependents
If you are responsible for feeding, housing and clothing any dependents it might
affect your score. Usually though, the score isn’t adversely affected until you have
3 or more dependents, as it would indicate your budget could already be under
strain. Surprisingly to some people, those who have no dependents achieve a lower
score than those with 1-3 dependents. This is due to the assumption that they could
easily uproot their lives and move on if their debts become too much.
Did you know… Each credit agency will hold slightly different
information about you

Q: Why was I turned down for credit?
A: The lender you applied to made this decision, and only they can tell you why.
They may have turned you down because of information on your credit report or
because of the information they have (such as the information you provided on your
application form). They are legally bound to tell you why they refused you credit and
they should tell you if their decision resulted from information held on your credit
report, as a result of credit scoring, or because of their policies on providing credit.
Q: If one lender has turned me down for credit will others do the same?
A: Not necessarily. Different lenders take different things into account when decid-
ing whether to give you credit. One lender may refuse your application while another
may accept it. If a lender turns down your application, get a clear explanation from
them why they made their decision.
Do not continue to try and get credit at this stage, it is always best to understand
why you may have been turned down before contacting other lenders. Every time
you try to get credit will be recorded in your credit file. Making several unsuccessful
applications for credit over a short period of time can have a negative effect on your
file. Follow the steps in this manual to obtain your file and start the process of clean-
ing up your credit history.
Q: Does making several applications for credit reduce my chances of getting
credit in the future?
A: Making several applications for credit over a short period of time can influence
a lenders decision. If you are hopping around for the best deal, you should ask for
a ‘quotation’ rather than applying for credit. Asking for a quotation should not affect
your chances of getting credit in the future because, for most types of credit, lenders
do not have to search your credit report to give you a quotation.
Q: What is credit scoring?
A: The information on your credit report, and the information you provide on an ap-
7.0 Frequently Asked
Questions
Did you know… The information on your credit file will be removed
after six years

plication form to a lender, may be used by that lender to give you a credit score. The
lender will use this credit score to identify the risk of offering you credit
Q: Can I find out my credit score?
A: Yes, however different organisations have different methods of calculating credit
scores. They do not have to tell you exactly how they work out their credit scores,
but they should give you a basic explanation of how their credit scoring works. They
should also tell you whether your application has been refused because your credit
score was too low, or because of the information held on your credit report.
Q: What do credit reference agencies do?
A: Credit reference agencies have huge databases on the credit histories of con-
sumers known as C.A.I.S data. This information is gathered and given to the credit
reference agencies from shops, businesses, banks, etc, which have given you credit
in the past. Your credit history contains information that potential lenders use to
evaluate and determine your ability and willingness to repay credit. Typically, credit
reference agencies give the following information: Your open accounts, credit limits,
amount owing on loans, number of late payments, collection actions, and whether
you own your own home or not. There is also a C.I.F.A.S database which detects
fraudulent activity.
Q: How does a lender qualify me for credit?
A: Most lenders look at the number of years you have worked at your present job,
the kind of work you do, the number and nature of negative entries in your credit
report, the amount of credit you currently have, savings and or current accounts
with the lender, length of time at your present address, is the telephone in your own
name, do you own your own home and other factors. They are looking for stability,
especially in residence and employment, and of course, sufficient income to take on
more debt.
Did you know… Negative points on your file will affect the rate you
can borrow at

To recap, the key elements for many underwriting decisions are based on: tractabil-
ity, affordability, credit worthiness and your attitude to pay back debt.
Q: What do I do if I’m turned down for credit?
A: Firstly, you need to understand why you have been rejected for credit. The lender
must provide you with the specific reasons why you were rejected, and the name
and address of the credit bureau that provided your credit report. You can appeal
your rejection by sending a letter to the lender explaining why you are a better credit
risk than your credit report indicates. But, it is best to rebuild your credit before ap-
plying for credit again.
Q: Who can look at my credit file?
A: Anyone with what is considered a permissible purpose can look at your report.
These companies, groups, and individuals include:
• Potential Lenders
• Landlords (although they may only be able to view certain portions)
• Insurance Companies
• Employers and potential employers (usually only with your written consent)
• Companies you allow to monitor your account for signs of identity theft
• Any government agency (although they may only be able to view certain portions)
• Someone who uses your credit report to provide a product or service you have
requested
• Someone that has your written authorisation to obtain your credit report
Q: Can I prevent credit reference agencies from holding information about
me?
A: No, they have a legal right to hold information about people. Credit reference
agencies (Experian, Equifax and Callcredit) help lenders process credit applications.
If they did not hold such information it would be much harder for you to get credit. A
good credit record makes it easier for you to get credit.
Did you know… Being on the electoral roll is vital to borrow money

Q: How long does information stay on my credit file?
A: All negative information stays on your credit file for anywhere from 1-6 years.
Q: What’s the worst thing that can appear on my credit report?
A: There are basically eight things that negatively impact your credit file. It is hard to
order the worst points as different lenders assess the information differently. Some
common examples are: CCJ’s, bankruptcies, repossession orders, defaults (paid/
unpaid), late payments, multiple searches, not being on the electoral roll.
Q: I have bad credit. Do I have to wait 7 to 10 years before I can get a loan?
A: It is possible for you to have a good credit file within 2 years of incurring prob-
lems with your credit file. Why? Because lenders are much more interested in your
present circumstances than what happened to you 3 to 6 years ago. Rebuilding
your credit can be done rather quickly through a systematic plan and a little perse-
verance. The credit reference agencies only hold information for six years, whether
positive or negative. If you follow all our advice and you can quickly rebuild your
creditworthiness.
Q: I have my credit report. What do I do now?
A: Go through it and look for negative items, such as: late payment history, multiple
searches, and public records (bankruptcies, county court judgments). If any of these
are inaccurate, dispute them directly with the credit bureau. This was covered in
more detail previously in the report.
Q: I found errors on my credit report. What do I do now?
A: All incorrect or unfair credit information has to be eliminated from your file. All
consumers have the right to challenge the accuracy of their credit report. Once you
challenge the accuracy of a particular item, the credit bureau must investigate that
item as soon as possible. If the credit bureau finds the item to be incorrect, or can-
not confirm or deny it, it must be removed immediately from your credit file.
Did you know…You can challenge any incorrect information on your
credit file

Q: How do I correct negative information on my credit report?
A: Challenging the accuracy or completeness of an item is the best way to have a
negative item removed. It is best if you can include documentation that supports
your challenge. If negative information is outdated, you again need to bring this to
the attention of the credit bureau. This should be done in writing. If the credit bureau
fails to verify the items you challenged within a reasonable time (about a month)
from the date your challenge was received then you should seek legal advice.
Q: Should I use a credit repair agency to fix my credit?
A: No. They often use illegal methods that can make things worse for you. Be wary
of agencies that tell you that they can remove County Court Judgments (CCJs) and
who require a large fee up front. It is better that you handle your credit problems
yourself, because only you can do a good job of repairing your credit.
Did you know…You should inform your lender if you’re struggling
with payments

How to Improve Your Credit Rating in Less Than 40 Steps

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