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Every time you apply for a credit card, loan, finance or a mortgage your credit history will be checked. This gives the lender information from which they decide whether they feel you are likely to make your repayments and so whether or not to provide you with the funds you have requested. There are many ways in which you can have inadvertently damaged your credit rating and so it is advisable to gain a copy of your credit report if you are considering a mortgage or large loan to ensure you don*t receive any unpleasant surprises.

There are three main companies in the UK who hold information regarding your credit history. These are Equifax, Experian and TransUnion. Unfortunately, they all hold different information and you will not know which of these companies will be used by the lender you decide upon and so you will need to collect your credit report from all three of them to build up an accurate picture of your financial health.

There are many ways in which a credit score can be damaged and some of these can be undone fairly simply. For example, if one of these companies has a previous address for you it can damage your score but this can be amended easily and will have an immediate effect on your rating. It is also possible that they may have accounts listed as open but which you have actually closed. This will also have a positive effect. However, you cannot request accurate information be removed so any late or missed payments in your past will have to stay on your record.

Credit checking companies will normally go back over the last seven years worth of records and so they late payments may have an adverse affect on your overall score at any point within this time. The only thing you can do to compensate for this is ensure that you do not make the mistakes again and prove to the lenders that you are more responsible and organised now. Even with previous blots on your record your score will creep back up every time you make a payment on time.