Credit History Bad?

Well, what you don't do is throw good money after bad by paying a company that may claim to be able to rebuild your credit for you. It is highly unlikely that they can do anything you can't do yourself.

It is still possible to get a credit card if you have run into difficulties in the past, for instance Capital One offer cards to people with a poor credit history which allow you to rebuild your history while enjoying the benefits of a card. This is one option to consider, but even if you go down this route, you should also do the following:

• Correct mistakes. If there are any inaccuracies on your Credit Agency Reports, inform, in writing, both the credit agency and the organisation that provided the information in the first place.
• Give explanations for any late or missed payments on your records.
• If you have had a County Court Judgement (CCJ) against you and you have paid the debt, get a Certificate of Satisfaction from the County Court and send copies to the agencies. The CCJ will stay on your file for 6 years, but the Certificate of Satisfaction will certainly make the best of a bad job and show any prospective creditors that you no longer have that debt against your name.
• If you have been declared bankrupt in the past and the bankruptcy has been discharged, obtain a letter from the Official Receiver to that effect and send a copy to the credit agencies.
• Obtain a Notice of Disassociation from the Credit Agencies from anyone who shares your address or name who might be a credit risk. If you are not financially connected to these people, you should not be penalised. Interestingly, you have the right to opt out of the automatic use of your financial partner's data.
• Make sure you are on the Electoral Roll.
• On existing credit, pay more than the minimum amount.
• Get the overdraft down and get out of as much debt as possible, pay household and existing credit bills on time, preferably by direct debit.

Consumer Credit Counselling Service
National Debtline
zens Advice Bureau