| Not being able to obtain credit can be a huge | | | | agency is a good way to find out our own current |
| drawback in today's world. There are so many things | | | | financial standing. You have a legal right to see your |
| where we have little choice but to have credit. I am not | | | | own files, and that costs £2. The files will reveal |
| talking about going out and buying an expensive | | | | details about who we owe money to, past debts and |
| product as such on credit, but something we all take | | | | current creditors, as well as how our accounts are |
| for granted, like utilities, and phone. | | | | being conducted. The key is to look through the |
| Unfortunately some people get themselves into so | | | | reports very carefully, then if there are any errors we |
| much debt they build up a poor credit record. And if | | | | need to get them corrected by contacting the credit |
| those debts get too serious it can even lead to | | | | reference agency involved. In the UK the 3 main |
| bankruptcy. Once it reaches that stage credit can be | | | | agencies are Equifax, Experian, and Callcredit. |
| virtually impossible to get. | | | | Rebuilding a poor credit standing takes time. There are |
| What happens though after someone goes into | | | | companies who will allow those with poor credit |
| bankruptcy, or takes on an Individual Voluntary | | | | scores to have a credit card, or loan. It is important |
| Arrangement which often lasts for 5 years or longer? | | | | though to be aware of the very high interest charged |
| Can someone ever be in a position again to get | | | | by these firms. The interest rates reflect the extra risk |
| credit? | | | | taken by them. Paying credit cards off every month is |
| Now of course someone who has got into serious | | | | essential, otherwise it is easy to get back into spiraling |
| debt would not want to take on credit they could not | | | | debt. Starting off with low levels of credit can be an |
| afford. That would just get them back to square one. | | | | effective way to rebuilding good credit. |
| Taking on more credit even with the idea to use it to | | | | Some people can find themselves with a bad credit |
| pay off old debts is one of the worse things possible. | | | | report through no fault of their own, due to credit card |
| But for those who have resolved past debt problems, | | | | fraud. Identity theft costs millions of pounds each year. |
| a good credit standing can be built up again, even after | | | | Although recent initiatives by credit card providers has |
| bankruptcy. This would be necessary in order to be | | | | certainly helped to reduce credit card fraud, much |
| able to get a mortgage, say, in time. And it should be | | | | more needs to be done by organisations and |
| remembered that not everyone who gets into bad | | | | individuals alike. |
| debt is reckless with money. Circumstances can | | | | If you are a victim of credit card fraud you can |
| overtake any of us. Businesses can go bust, especially | | | | suddenly find yourself with debts in your name you |
| in the current economic climate. Someone who takes | | | | knew nothing about until it is too late. Obviously if |
| on an arrangement to repay their creditors, either on | | | | someone else has started using your cards you need |
| what might be described as an 'informal' basis, or via a | | | | to contact your provider, and the police. You should |
| formal, legally binding arrangement - as with an IVA - | | | | also contact the credit reference agencies and let |
| has likely faced up to their responsibilities in wanting to | | | | them know what has happened, lodging a fraud report |
| pay their debts. | | | | with them. This should stop anyone else getting credit |
| Doing a credit file check through a credit reference | | | | in your name until the issue is fully resolved. |