It’s only after you’ve applied for a credit card or a loan and been turned down that most people realise the importance of a formula called a Credit Score. Credit Scoring is the lender’s attempt to predict your likely future behaviour based on the information in your Credit Report. Credit Scoring not only dictates what products you’ll be considered for, it can also determine how good a deal you’ll get.

Some lenders may request that a Credit Score is provided along with your Credit Report by the Credit Reference Agencies like Experian, Equifax or Call Credit that hold the information about you. Precisely how those Credit Scores are constructed is never made public. You can’t influence the method a lender will use to calculate your Credit Score directly, but that score is based on your Credit Report. You can repair credit by making sure that the information about you on your Credit Report is as up to date, accurate and attractive as possible.

There is no short cut or trick to how to improve credit rating. Keep a check on how healthy your general credit rating is by regularly viewing your Credit Report so you can see what potential lenders see. You’ve a legal right under the Consumer Credit Act to demand to see your Credit File after paying a fee of just £2. If you think anything in your credit history is wrong, explain the problem and ask them to remove or change the entry.

Don’t panic if the information is accurate and you know you just have a poor credit history. Adverse credit cards are available for people with a poor credit history and can help improve your credit score over time by demonstrating that you can manage credit successfully. There are other steps you can take to improve your Credit Score. Register on the electoral roll which only takes a few minutes if you do it on line, pay your bills on time and don’t exceed any credit limits you have. Follow these steps to build your credit history and when you check your credit reference file in the future you should enjoy an improved credit rating.

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