Each credit reference agency works out their credit score differently, but the following factors are likely to have an impact:
- Missed or late payments.
- Defaulted credit agreements or CCJs.
- Lots of credit applications, for example for loans or credit cards, in a short space of time.
- Going close to or over the credit limit on your credit cards.
- Frequent cash withdrawals using your credit card.
- Not being on the electoral register.
- Having joint accounts with someone with a bad credit record.
You should make sure that your personal details with each of the agencies are correct as even small errors can affect your rating. If you find a mistake, you should ask all the agencies to correct it.
Make sure you’re not still part of any joint accounts or financial commitments from past relationships, like with an ex-partner or flatmate. For example, utility bills or joint bank accounts. If you’ve not got anything outstanding, you can ask the agency for a ‘notice of disassociation’ to remove a financial link between you and another person. You can find more information about the process on each of the agencies’ websites. You should contact all three of them.