How to erase the stain on your credit reference yourself

Many companies claim they can help you clear your credit reference quickly and easily. All you have to do is cough up a ‘small’ fee, and voila, your credit reference is as good as new. But we all know this is not always the case, and the reality is a lot different from the far-fetched promises these companies make.

The fact of the matter is that these companies do nothing more than what you could do for yourself. And, it will cost you a fraction of the price and effort. Now doesn’t that sound interesting?

So how do you do this? Well, you apply to one of the reference agencies for a copy of your credit file. This costs about £2. You will need this to check if the entries made are correct. If you do find a discrepancy, ask the reference agency to correct the mistake, provided that you have proof.

However, what you cannot do is erase CCJ from your file if it has been placed there correctly. For this you would have to wait another 6 years. What a credit reference company does is help you by allowing people to add an entry explaining any mitigating circumstances surrounding the CCJ. Also, there are some simple steps you can take to boost your credit rating, like making sure you are on the electoral roll.

If a company does claim they can erase the stain on your credit reference, they may be taking a huge chance. Recently, by law, all credit reference agencies need a license, and without one they will be committing a criminal offence and going against the Consumer Credit Act.

The Office of Fair Trading will enforce a strict process, only allowing licenses to firms that do not make exaggerated claims on what they can do for customers. This has resulted in numerous credit reference companies closing down. This says a lot for the so-called promises they make.