To better help you to read this article, here is a number of definitions. An arrear is legal wording and is a means to refer to when you are past due in making instalments on a credit contract. They will be \'in arrear\' from the time that their first scheduled repayment is missed. This term tends to be used when connected to over due payment of personal loans, credit cards, rent or mortgage as well as child support and tax payments.



A \'CCJ\' is actually short for County Court Judgement. This refers to a legal judgement made in a County Court in connection with someone in debt to others (an individual or company) or where they have violated the stipulations of a credit agreement. A County Court Judgement will present an appropriate reimbursement strategy with the idea that the person in debt will eventually be able to payback their debt. County Court Judgement are a matter of public record and will influence the debtor\'s potential of accessing any further credit for the next six years.





A default is meant to denote where you have failed to meet your credit obligations. If you have ignored your payment on a mail order account, as an example, they might file a Notice of Default on to your credit file. This will not look good on your credit file at a later date if you choose to have additional borrowing.



A credit record is basically a documented record of whatever credit you have accessed for the last six years. It presents the amounts you have taken out and if you have defaulted on any payments etc. A credit record helps prospective lenders to examine your credit history to help them decide whether to extend you a loan. The information on your report is collected by credit reference agencies like Equifax and Experian. They take statistics from public reports (e.g. information from the electoral roll, legal judgments etc) and from loan providers as well as financial institutions: e.g. credit accounts, credit applications.



First of all, get an up-to-date copy of your credit file to see if there are any inaccuracies on it such as a satisfied County Court Judgment (CCJ) that is still showing as unsatisfied or debt that is still showing as outstanding. You can get a copy of your report from one of the credit referencing agencies such as Equifax, Experian or CallCredit PLC for around �2.



If you do see any errors or inaccuracies, these should be notified to the relevant lender in writing.



Check that you don\'t have any financial associations or financial connections on your file that aren\'t relevant. For example, if someone you have lived with previously - or even someone who was at your address before you - is shown as still being there on your report, this could affect your credit rating.



Make sure that you are on the Electoral Roll - especially if you have recently moved. This can seriously affect your chances of getting credit if you are not showing on there.



At all costs, avoid companies who say that they repair your credit! Any changes that need to be made to your credit file can be instigated by you. You do not need to pay a third party to do it on your behalf.



Keep checking your credit report regularly - this way you can keep an eye on it.



If an application is refused, do not make repeated applications again or elsewhere. Find out why you were declined and take steps to put it right. Lots of declined applications on your file will make the situation worse.



Finally, when making an application, always fill in the correct details each time, especially moving home dates. Failure to do - or even a slip of the pen - could see you being refused credit.