If you’ve had debt problems
in the past then you may well have found that the effects they have on your life are there for the long haul. Debt related problems like CCJs and even solutions that you may take to sort yourself out like IVAs and bankruptcy proceedings will show up on your credit record, potentially long after your debt problems have been sorted out.
This can be a real problem down the line when you want to apply for new credit products. If, for example, you have a CCJ listed on your credit history then this will act like a big red flag to a new lender when they check you out. It tells them that you have had money management problems before and your creditor had to take legal action to get their money back. So, they may not be willing to let you borrow money as this makes you look like a risk to them.
The problem is we cannot always wait for our records to naturally clean themselves up when we have these issues listed on them. We may want to apply for a new loan, credit card or mortgage. The fact that we are back on an even financial keel now is not important to a lender, however, as their main concern is what your record says about your past.
There are plenty of companies out there that will tell you that they can sort you out and clean up your credit record for you. These companies are usually known as credit repairers. You’ll be told various things here. A company may, for example, tell you that they can have your CCJ removed or negative entries deleted from your credit history. So, can they do the job?
In the majority of cases
what you’ll get here is no help and you’ll have to pay for it. You cannot move a legal restriction or entry from your credit history unless it is due to be removed -- other issues can only be removed by you, the credit reference agency or the creditor. And, a lot of these companies will even try to get you to perjure yourself to clean up your record which puts you on the wrong side of the law.
Many of these companies are simply there trying to get you to take out finance from them. And, prepared as they may be to let you borrow money, they’ll charge you extortionate interest rates for the privilege. They’ll get your interest by claiming to be able to clean up your history and then divert you into taking out finance from them.
The fact is -- if your credit record can be changed -- that you can have this done yourself completely free of charge. You don’t need to use a credit repair expert. All you need to do is to check your credit record and, if it contains incorrect entries or information, then ask for it to be changed. It really is that easy.