Credit - your record
These days, having a less than perfect credit record or an irregular income, shouldn't stop you from taking out a mortgage or getting access to other borrowing. If this were the case, a quarter of the UK poulation would be refused credit according to recent research, so it's not a problem confined to the minority.
If you've had credit problems in the past don't immediately rule out the high street lenders. An increasing number assess each case individually and would consider someone with a County Court Judgment (CCJ) for non-payment of debt providing it was for a small amount and had been cleared some time ago. But if you are refused credit, lenders don't have to tell you why.
Both a CCJ and a bankruptcy order are held on your credit record for six years. CCJs can be withdrawn from your file if they are cleared within one month. You could be unaware that you have a CCJ on your credit record - perhaps it was caused by a bill that's been left unpaid as it was sent to an old address.
When you apply for credit, lenders check your credit record - a process known as credit scoring - with specialist credit reference agencies that collect information from the courts, lenders and the electoral roll.
If you feel there has been an error made in your credit scoring, you can obtain a copy of your credit file from one of these agencies and ask for an investigation. If you are proved right, you can have your credit record altered.
Beware of so-called credit repair companies, that can sometimes also offer loans at high rates of interest. They have no more power over your credit score than you do and often the only remedy is time.
Contacts:
Experian
Consumer Help Services, PO Box 9000, Nottingham, NG80 7WP
0115 976 8747
Equifax
Your report is available online or by written request to:
Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US