Here you’ll find answers to the questions we get asked the most about credit correction.
Is credit correction a scam?
Unfortunately, not all credit repair companies operate lawfully. So, if you decide to work with a credit repair organisation, you want to be sure it’s legitimate. Turner Little strictly follow regulations that the government have put in place to protect you from shady credit repair practices and give you peace of mind.
How should you choose a credit correction agent?
Look for an organisation who has been around for a number of years and then ask them if they are regulated. This will not be as a credit corrector, as it is not a ‘regulated industrial sector’, but they could be regulated in some other sector which may give you some confidence. For example, solicitors are regulated by the Law Society, accountants by their own regulatory body, Company Incorporation Agents by HMRC and some firms by the FSA.
Ask the agent to provide evidence of any past successes claimed. A reputable company will not be short of good references. Also, compare costs with a few different companies and ask for quotations in writing. And always ensure you fully understand the terms and conditions; a good credit corrector will always be happy to help.
Can you correct your file yourself?
There are no steps an organisation or anyone else can legally take to correct your file that you can’t take yourself for little to no cost. A reputable company, however, is likely to have the know-how to get you the best possible results.
The reality is that you can obtain a copy of your credit file yourself for a statutory payment of only £2.00. There are two principal credit reference agencies in the UK, Equifax and Experian, and they are legally obliged to supply you with a copy of any file they hold on you on payment of the cost stated.
Any organisation you approach will simply obtain a copy of the same file. Turner Little offer this service along with a detailed analysis of your credit file and recommended action.
If you decide to do it yourself, here are some tips to help you improve your credit rating:
- Request a booklet called “No Credit?” from the Office of the Data Protection Commissioner.
- If you’ve had a county court judgment against you and you have settled that debt within a month, it should be removed from the court records and credit files although the history of the debt may not be deleted from your credit file.
- Where a judgment is paid more than one month after it is imposed, it can be marked ‘satisfied’ after you apply to the court for a certificate of satisfaction. The court will then pass the information to the credit reference agency. If you believe information of a judgment is incorrect, the court can give you guidance on having it changed.
- Do not be afraid to challenge entries that you think are wrong. You can make amendments to your file, and have incorrect information erased. Alternatively, you can have a note added to your file stating why you believe an entry is incorrect.
Will I be able to obtain credit afterwards?
Credit correction is not always the answer. There are lots of things taken into account by credit card companies, banks and loan companies in deciding whether to make an offer to you. Your credit file is just one of those things and, whilst very important in the decision-making process, it is not the only thing a lender relies upon.
Each lender has its own set of rules and these rules are not the same and are not published. Sometimes you can be turned down for a loan or credit card, believing it is your credit history that’s to blame, when in reality, it has nothing to do with the decision. It could be that you do not fit a lender’s criteria in the first place.
Does credit correction work?
The plain and simple truth is that sometimes it doesn’t work. In many cases, a person’s history is just unsatisfactory, and the credit reference agencies files are 100% accurate.
Credit correction can often improve the perception of you as a risk by various means, including removal of county court judgements from your credit file (though only in very exceptional cases) and defaults (though only with the agreement of the creditor whose consent will be needed).
If I am approached, how can I identify a credit correction scam?
- Look at the source of the approach. If it came by email, be very wary.
- Examine exactly what you’re being offered. If they say they’ll be able to erase your negative credit history, don’t believe a word. They cannot possibly tell you what they can achieve without first seeing your credit files, and even then will need to have some input from you before they can reliably comment on precisely what they can do. If you have unsatisfactory credit, there are steps that can be taken, but nothing will happen instantly.
- Be cautious if they ask for a large upfront fee and do not pay upfront for any correction work promised. Wait for the full analysis to be completed.
- If the corrector suggests supplying false information on a credit application, do not listen. To do so would be a criminal offence for which you can be prosecuted and possibly imprisoned.
- Be extremely careful if they offer a loan. Read the terms carefully, and you will in all probability find that the interest rates are outrageous, and the repayment plan difficult to meet.