Credit score management

The importance of a good credit score when trying to arrange a loan, set up a new credit card or take out a mortgage is well known, especially to those who at some point ran into problems and had to obtain copies of their own credit report and address the problems in it. As this can be a fairly slow process it is best to include credit score monitoring as part of regular personal finance management rather than wait and potentially discover problems at a time when you may need credit quickly.


Unfortunately this is made somewhat tedious by the existence of multiple companies providing credit score information. Equifax and Experian are well known names, while the newer Callcredit Information Group has only been around under that name since May 2008. As companies you deal with may go to any of these providers for a credit report it's unfortunately necessary to monitor your data with all of three.

To keep costs down you can opt for getting the statutory report that you are entitled to under section 7 of the Data Protection Act from 1998. While this is free you are likely to be charged a few pounds for getting it mailed out to you. Opting for the more expensive online report and optionally also the rating is likely to be faster and a bit more convenient, but will set you back £15 or thereabout.

One trick to get around paying for credit reports is to ask for a copy from any company which you open an account with. A friendly request may be enough to convince them to email you a copy, alternatively you can nudge them with a mention of the Data Protection Act although the latter may be met with instructions to request this in writing and submit a fee to cover their expenses.
Once you have a copy of your report the most important things to check is that you are correctly listed on the electoral roll at the right address and that there is no incorrect information (for example entries for a former partner that you had a joint account with). It's helpful if you have at least two credit agreements in good standing (ie paid on time) as this re-assures other companies that you have well managed finances.