How is my credit rating calculated?
Whenever you apply for credit, the credit card company or high street store will probably check your credit score using information from a credit reference agency like Experian, Equifax, or Call Credit. They give you a credit score using a points system based on your credit history. If you get a low credit score, you may have trouble obtaining credit.
How did I get a bad credit score?
A bad credit score results from a bad credit history. This could include any of the following:
- County Court Judgments.
- Missed payments on borrowings.
- Being new to credit, so having no credit history.
- Not being on the electoral roll.
- Giving false details on your credit applications.
What can I do about a bad credit score?
If a lender turns you down for credit, ask them which credit reference agency they used to find out your score and write to them. The credit reference agency has to reply within seven working days. If you think that anything in your credit history is wrong, contact the credit reference agency to alert them to the fact the entry is incorrect. They may then require you to contact the original lender who supplied the information, explain the problem and ask them to remove or change the entry. If it really is wrong, they are required by law to change or remove it.
If you have a genuine bad credit history then the next step is to rebuild your credit score. Our Vanquis Visa Card could be a great help. See how to improve your credit rating here.