How can I improve my credit?

To improve your credit you must ensure that you are not in arrears on existing credit and must make all payments on time. This can be easier said than done if you have a mountain of debt and feel like you are sinking.

The first step

The first step is to find out exactly what your credit file currently says. The best way to do this is to contact one of the two main credit bureaus and ask them to send you your credit report. The two credit bureaus are:

Experian Consumer Help Service
Tel: 0115 976 4050
www.uk.experian.com

Equifax Plc
Credit Advice Centre
Tel: 08705 143700
www.equifax.co.uk

For a small fee you can get an online report and can get regular updates when things in your credit file change.

Step Two

Now prioritise your debts. Priorities must be payments on your home, utilities, income tax, council tax. Secondary are your credit committments as they will lead to defaults and CCJs but nothing much more serious. If you have a means to get payments back from arrears then use it. If a remortgage is a practical option it may help you to get a record of good credit usage whilst paying off existing bad credit committments. If you cannot pay your credit committments then contact your creditors and negotiate a monthly payment that you can afford and stick to it. You will be surprised how small a payment they will accept if they know they will get it on a monthly basis.

Step Three

Keep the agreements that you have made. Pay the monthly payments on time. If you are going to have problems then contact the companies , explain your situation, and negotiate a revised payment schedule.

Getting help and advice

If you are in the position where your credit is getting in the way of what you want to do you are not alone. Thousands of people are in the sames boat as you. Below are three ways to get help and advice to find a solution to your bad credit history. In time you will look back and your bad credit will be history. All you need is good advice and positive action.