How can I get out of debt?
Find out which debt solution is right for youGet started
Answer a few simple questions
See if you are suitable
Understand your next steps
If you’ve got bad credit history, this could start to have an impact on how you live your day-to-day life.
If you’re currently struggling to make debt repayments, or if you have done in the past, not only will your finances be taking a hit, but your credit rating too. This could affect your day-to-day life, as what’s on your credit record can have an impact on many different things.
Recent research carried out on behalf* of Debt Advisory Centre Scotland has found that 6 million British adults are being excluded from day-to-day life because of their poor credit history. 3 million of these have been blocked from mobile phone contracts and 2 million have been turned down for a rental agreement. Another 1.7 million were rejected for a mortgage.
But is there anything you can do about this? Read on to find out.
Where do I find the details of my credit report?
The information held on your credit report can be accessed through one of the three leading credit agencies, Experian, Equifax and Callcredit. When you’re in your credit report you will be able to see any missed payments you’ve had in the past, or more seriously, any problems that have led to a Scottish Decree (which will remain on your credit file for 6 years).
If you see anything on there that shouldn’t be, such as a missed payment that you have evidence of paying, then query this with the company. Their contact information should be on your credit report and you could ask them to update or correct this information based on the evidence that you have.
How can I improve my rating?
If you’re currently dealing with problem debts, unfortunately your credit rating won’t improve drastically overnight. In the meantime though, there are a few things that you can do.
Register to vote if you’re not already on the electoral roll, as credit agencies use this information to confirm your identity. You can register to vote, here. As well as this, you should make sure that your credit report has your correct address listed, as well as your current name (e.g. your new surname, if you’ve just got married) as this can also have an impact on your overall rating.
Applying for more credit to help you cope with the problem debt that you have is never a good idea, so stop applying. Every application you make will leave a footprint on your credit report, regardless of whether you’ve actually been accepted or rejected. So lots of applications in a short period of time, will only give off the impression that you’re desperate for cash.
If your credit rating is really not in the best of shape, maybe because you’ve recently missed a few payments, then the best way to improve it is to tackle your problem debts first. If this is not something that you think you’ll be able to do by yourself, then seek the advice of a professional.
One of our expert advisors will be able to listen to your circumstances and talk you through the different debt solutions available in Scotland (for which fees are payable). Seeking this type of advice could help you to finally get your finances back on track and be the first step to rebuilding your credit rating.
*OnePoll questioned a nationally representative sample of 2,000 adults aged 18 and over between 11th February and 23rd February 2015, of whom 635 were in Scotland. Figures have been extrapolated to fit ONS 2013 population projections of 50,371,000 UK adults.
by Emily BancroftBack to blog home