The 6 Best Ways To Rebuild Your Credit File
Short-Term Steps to Rebuild Your Credit File in 2023
Rebuilding your credit file may seem like a difficult task, but there are steps you can take to improve your credit profile. You can still turn things around even with a history of poor credit.
To begin with, to rebuild your credit file, you should acquire a copy of your statutory credit report from the three leading credit reference agencies (Experian, TransUnion, and Equifax). This will ensure that the credit details on record with each agency are correct.
Remember that lenders and utility companies may not report your credit history to all three agencies so you could have a high credit score with one credit reference agency and a lower score with another. It is essential to check all three credit reference agencies.
Acquire a Copy of Your Statutory Credit Report
Your Credit Report: You can apply to view a list of the creditors and balances shown on your credit file on each of the three main credit reference agencies – Experian, TransUnion, and Equifax, or you can apply for one combined, easy-to-read report online by clicking here: CheckMyFile
Add a Short Statement to Your Credit Report
To rebuild your credit file, add a short statement to your report explaining why you got into debt (e.g., illness or redundancy).
Apply for a Copy of Your Credit Report
- TransUnion: https://www.transunion.co.uk/consumer/consumer-credit
- Equifax: https://www.equifax.co.uk/
- Experian: https://www.experian.co.uk/consumer/statutory-report.html
- CheckMyFile – combines all three credit reference agencies into one account: Click Here
Notify Credit Reference Agencies of Any Errors
If you notice an error on your credit report, you can either apply to notify each of the three credit reference agencies or Check My File will do this for you.
Register for the Electoral Roll
Register for the electoral roll at your current address. This will help confirm your identity and address to lenders, making it easier to apply for credit and to rebuild your credit file.
Update Your Details
Update all personal details (such as addresses) on your credit profile. This will ensure lenders have accurate information about you and reduce the risk of errors on your credit report.
Long-Term Steps to Rebuild Your Credit File
In the long term, showing lenders that you can borrow money responsibly is essential. You can do this by using and repaying credit. But before you do so, you need to be 100% sure you can afford and meet the repayments.
Here are some long-term steps you can take to rebuild your credit file:
Consider Credit Designed for People with Low Credit Ratings
Consider credit designed for people with low credit ratings. This usually means low limits and high-interest rates. You may improve your rating by using this type of credit for small purchases (such as groceries) and repaying the money in full and on time.
Space Out Your Credit Applications
Space out your applications. Each credit application will leave a mark on your credit report, so aim to apply at most once every three months.
Check Your Eligibility Before You Apply for Credit
Check your eligibility before you apply for credit. Doing this can help you reduce your chances of being rejected and having to make multiple applications.
Once you are back on the straight and narrow, stay that way by closely monitoring your finances. One way to do this is to sign up to Check My File . This paid subscription can help you monitor and improve your credit profile, ensuring you are always in control of your finances and on the road to rebuilding your credit file.
- Get a copy of your credit report today by clicking CREDIT REPORT
- Learn the SIX BEST WAYS to rebuild your credit score by clicking REBUILD CREDIT SCORE
Which Debt Plans apply to you?
We assess based on your circumstances and will review for all available debt advice solutions.
Please find below a list of debt solutions we will evaluate for:
- Debt Management Plan (DMP) – Information on a debt management plan
- Individual Voluntary Arrangement (IVA) – Information on an IVA
- Debt Relief Order (DRO) – information on a DRO
- Bankruptcy – information on Bankruptcy
If you have used our online application form, we will contact you to run through your income and outgoings and discuss your options so you can make an informed choice. At Debt Support Direct, we offer all statutory debt solutions in England, Scotland, Wales, and Northern Ireland so that you can choose the solution tailored to you and your circumstances.
If you have an attachment of benefits and have chosen the debt solution that you feel is the most appropriate, there will be some paperwork to fill in to put the debt solution programme in place.
Our debt advice is free, non-judgmental, and friendly, so if you are struggling with debt, speak to one of our experienced debt experts for a confidential chat on 0161 549 9848.
Free and impartial money advice is available from the Money Helper, an organisation set up by the Government for people in debt.
Debt Support Direct does not administer any debt solutions; we will assess your debts, circumstances and affordability and signpost you to an organisation or charity that can set up and help the debt plan you decide suits your circumstances.
All debt solutions should be very carefully considered. Some providers may charge fees if a solution is taken; if applicable, these will be outlined during your consultation.
Your ability to obtain further credit in the short term will likely be affected, which may also be the case over the medium to long term. Calls from mobile phones and other networks may be charged to our free phone number.
The Financial Conduct Authority regulates Ruby Holdings Limited, trading as Debt Support Direct. We can offer debt advice for both formal and informal solutions. All debt solutions must be carefully considered, and you must take independent advice.
There are sources of free debt advice and services. You can find out more by contacting the Money Helper on 0800 138 7777 or visiting moneyhelper.org.uk
Here are some links to UK debt charities that can provide help and advice on managing debt:
Please carefully read the information on these websites to understand what services they offer and if they would fit your needs. Reaching out for help when you start having difficulties managing your debts is important. These organisations can help you understand your options and work with you to develop a plan to get back on track.