How sustainable is your debt situation? Your credit report reveals all
By Mr Bankruptcy
22nd April 2025
Facing a debt problem can be overwhelming, but the journey to regaining control starts with understanding the nature of your debt and your credit habits.
A credit report is a personal ‘school report’ on your borrowing behaviour. It can reveal why lenders don’t want to take a risk on you and provides feedback on the actions you take to improve your financial standing. It’s important to understand what your credit report is telling you, and to make sure it’s accurate.
What is a Credit Report?
A credit report is a detailed document that outlines your credit history, including credit accounts, payments, credit inquiries, and public records. A credit reporting agency such as Experian or Equifax will collect data from all your creditors, lenders, and from public records to generate your report.
Lenders will refer to your credit report when deciding whether to approve a loan, credit card, or mortgage application, and to determine what interest rate they will charge. Service providers can also use your report to assess your creditworthiness before agreeing to a service contract, for example a mobile phone contract. A typical credit report includes some key components:
- Personal details. This includes your name, address, date of birth, registration on the electoral roll and employment information.
- Credit Accounts. This section lists all credit cards, loans, overdrafts and mortgages. Each account will show the account type, credit limit or loan amount and current status.
- Payment history. This is a record of all payments made, including late or missed payments.
- Searches. This section lists all the entities that have accessed your credit report, e.g. lenders, creditors, and potential employers.
- Public Records. Includes information from public sources such as county court judgments for debt, bankruptcies, or insolvencies.
- Financial Associates. If a person has a financial associate (for example if they have a joint loan), the lender may want to know about their financial behaviour as well.
You have a statutory right to access your credit report for free and you can use it to monitor your financial commitments and check for fraudulent activity.
Understanding your credit score
A credit score is the numerical representation on a report of an individual’s creditworthiness, reflecting how likely they are to repay debts. It’s used by lenders as a yardstick to measure an applicant’s suitability for a loan.
Each credit report agency uses their own scale, but they all tend to be three-digit numbers, a higher credit score indicating a longer credit history of responsible credit management. This represents financial stability which means a lower risk to lenders, so it can get you more favourable loan terms.
Checking your credit report
Reading your credit report can seem complicated but here are some checks you can do without needing to be a financial expert:
- Review Personal Identifying Information to ensure your personal information is accurate and up to date.
- Check that all the credit accounts listed are accurate, including the account type, number, and credit limit or loan amount.
- Review your payment history to ensure it’s accurate, including any late payments or accounts sent to collection.
- Make sure all credit inquiries made on you are legitimate and authorized.
Improving your credit rating
You can improve a bad credit score with some straightforward actions: start paying your bills on time; keep credit card balances low and use credit-strengthening products such as secured credit cards.
Making regular payments by direct debit can also help improve your credit score, but make sure you have enough money in your account to cover payments, or your score will drop.
Dispute inaccuracies
Your credit score may also be lower than you expect because of errors or inaccuracies on your credit report. If you spot any, it’s essential to challenge them straight away or it could cost you in higher interest rates or a loan refusal.
You have the right to contact your credit report agency, providing documentation to support your claim. This might be proof that you’ve repaid a debt or an up-to-date identification document. You should also contact any company that provided the agency with incorrect information.
Everyone should be reviewing their credit report more regularly, whether they have an unmanageable debt or not. It’s an important tool for improving your creditworthiness and for getting out of a bad debt situation. But it’s also a great way to see how your financial good behaviour improves your prospects for future credit.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors well known for our supportive, non-judgemental and friendly approach.
We offer a full range of advice and professional services to individuals, business owners and directors faced by unmanageable debt and who want a solution. We also help anyone involved in a civil or commercial dispute.
In addition to debt management advice, our services include:
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We know how unmanageable debt can affect lives and want to help as many people as we can. That’s why we offer a free consultation service to some clients.
If you are ready to take action over an unmanageable debt problem, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk today and find out if you qualify.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.