You may have applied for a new credit or store card or a loan and been turned down. This can happen even to people who owe no money at all. The reason is that when you try to borrow money the lenders give you a credit score. They do this by applying to one of three credit agencies; either Experian, Equifax or Call Credit. These give you a credit score based on several factors. The reason is that when you try to borrow money the lenders give you a credit score. They do this by applying to one of three credit agencies; either Experian, Equifax or Call Credit. These give you a credit score based on several factors. They will check if you are on the Electoral Roll. If you are not this raises doubts.

They will check if you are on the Electoral Roll. If you are not this raises doubts.

They will check public records for things like Court judgements or home repossessions.

There will be information on your bank accounts, your loans and your credit or store cards and whether you miss payments or are late with them

What they are looking for is a record of you responsibly paying off loans and this is what can catch out the person who has never borrowed money before. There is no record of them making regular payments. Sometimes people have forgotten about disputes over mobile phone contracts at the end of a rental agreement. This may appear as a non payment. Details of people linked to you financially through joint accounts or joint loan applications will appear as well as previous addresses. Details of people linked to you financially through joint accounts or joint loan applications will appear as well as previous addresses.

There is also a record of how many searches there have been on your file. If there are a lot it suggests that lenders are refusing you credit.

Lastly there may be a warning on your file if someone has tried to use your details fraudulently.

All this information is used to give you a credit score.

A poor score means that you will not get the loan or card that you wanted or it will be at a much higher rate of interest so you will pay a lot more for the money you borrow.

You may be asked to provide a guarantor who will pay up if you default. This person has to put in writing that they are willing to be guarantor. Be wary about becoming a guarantor yourself as you could become liable for the entire loan.

YOU can do things about a poor score. You may see adverts from companies who claim they can restore your credit rating (for a fee)! There is nothing that they do that you cannot do yourself.

First you need a copy of your credit report. You can get this by writing to any of the three agencies and enclosing a fee of £2. If you apply on line they will offer you a free credit report but to get this you have to submit your bank account details. If you do not cancel as soon as you receive your free credit report you will find yourself paying every month for a credit report If there is any inaccurate information you can apply to have it changed. If there is a small debt you had forgotten about you can pay it off and put a notice of correction on your account and explain any special circumstances. This is all a credit repair agency can do.

If you want more information call in at the Citizen’s Advice Bureau at 7 Atholl Crescent. Drop in is 10am-12 noon, Monday to Friday or phone 01738 450581 for an appointment in the afternoon. Everything is confidential, even the fact that you visited the bureau.

Website www.adviceguide.org.uk gives accurate information. You need to click the Scotland tab in case it is an issue affected by Scot’s Law. Benefit’s and employment are the same in both countries but Debt is different.