Paying for a Good Credit Rating

The question was recently asked if a person could pay to get a good credit rating. The answer is most usually no. There are service companies out there that purport to offer you a better credit rating on the basis that they wipe clean your credit history. These companies are often disreputable and just serve to help you get more in debt. In fact they tend to prey on individuals who have bad credit histories promising to repair them.

Is there something you can do in order to clean up your credit history? You can improve your credit with a credit reference agency. First you need to start looking at your credit report. Are there items that are older than five years? A credit report should tell you what you have borrowed in the entire history. This means any loans, credit cards and mortgages will be reported on this credit history. Your repayment record is also going to be mentioned. In this area it will say if you are in good standing, how long you have been in good standing, and whether the account is open or closed. Lenders will use this information in order to get the credit score for your application as well as calculating the risk you pose. This means that your credit history must reflect in a good light.

If there is anything on the credit report that you do not agree with you can do a query and then a claim. In other words you should make sure that all of the information is something that you have had. Any card or loan that you never took out should be removed. You should also have things removed that reflect poorly on you. In this case you would ask that the older items be removed due to the length of time the accounts have been closed. You can also ask to have arrears removed after a certain period of time. If you are not registered to vote you should do so. This helps you with your electoral roll position.

Bad credit is generally termed as having an Individual Voluntary Agreement, bankruptcy, or county court judgements held against you. These should only remain on your credit report for six years. After that time they should be removed as long as they have been paid off or settled. They have an effect on your credit rating to which you should have them removed. If it was a missed payment two years ago that is not going to be a huge issue, but major problems can hold you back. If there was a major reason for your credit issues you can ask that a note be made regarding that account.

Back To Financial News April 2008
Travel Rewards With Your Credit Card
APS and Prepaid Gold MasterCard
The Figures On Credit Card Balance Transfers
Pointers for Balance Transfers
Credit Card Interest
Credit Offers Limited
Executive’s Life Ruined by ID Theft
Getting Around Life’s Obstacles
How To Borrow A Grand
Paying for a Good Credit Rating
UK Debt and the Mortgage Industry
Abuse of Government Credit Cards
Asian Growth Helps UK
Banks Raising Funds Offers Hope
Darling and UK Banks Going Head to Head
Estate Agents and Card Fraud
Government to Help UK Banks
Insuring UK Gardens
Interest Rates Rising with Underhanded Techniques
Lost Luggage Insurance Removed
Overdraft Charges Increase Credit Card Balances
Prediction: 10 Percent Drop in Insurance Market
Rise in the Housing Market Prices
The Scams With Telephone Calls and Security Codes
UK Insurance Costs Rising