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Follow these simple rules and your credit report will be accurate and you will stand a better chance of getting the credit you want.

1. Get to know your credit report

Your credit report is a personal record of your loans mortgages and credit cards your repayment history and other information such as whether you have any court judgments against you. Its crucial that it is up to date and accurately reflects your circumstances.

2. Set the record straight

If anything on your credit report needs updating or correcting you need to set the record straight by challenging entries you think are wrong or adding an explanation if special circumstances account for a blot on your report.

3. Protect your identity

If you notice something unusual on your credit report such as a loan application you did not make you could be a victim of identity fraud - the fastest-growing crime in Britain.

4. Assert your independence

Your credit report lists anybody with whom you have a joint account - your financial associates. Lenders may also look at their financial histories when you apply for a new loan. If you are now financially independent are no longer part of a previous financial unit or no longer share a joint financial agreement make sure this is clear on your credit report.

5. Don't leave footprints

If youre shopping around for credit ask potential lenders for a quotation before they search your credit record. Lenders may view a flurry of credit application searches as suggesting that you are desperate for money over-extended or even that identity fraud is taking place.

6. Tell the truth

Never never lie on an application form! Lenders will find out and any "inaccuracies" on an application could be classed as fraud and as such will tell against you and cause difficulties in future applications for credit.

7. Don't let debts pile up

Pay your existing credit card bills and loan repayments on time - this shows potential lenders that you are in control and more likely to meet future repayments. Better still try to pay off any outstanding credit accounts completely.

8. Avoid credit repair companies

These are not credit reference agencies and do not have the authority to amend your credit report. Dont be tricked into paying for services you dont need.

9. Know the score

Before deciding whether to offer you credit cards loans or mortgages lenders take the information in your credit report and on your application form and use their own unique formula to calculate a credit score - a number that they use to estimate the likelihood that you will repay what you owe and make your repayments on time.

10. Keep on checking

Your credit report is constantly changing. Check regularly to ensure its accurate. That way you can ensure there are no nasty surprises the next time you approach a lender.

2009-02-17 00:00:00 © Moneyextra.com