Past debts are a major problem for people applying for new credit. Here are a few things that can help especially if the default is unfair.

If you believe a default to be unfair, then your first course of action is to contact the company or lender and lay out your terms. If the case is disputed the company can wipe the default from your file. If that fails then your next step is to complain to the financial ombudsman who is the free and independent arbiter of dispute. They can rule that the debt can be wiped from you file if they believe it to be unfair.

If you are prepared to repay the debt in part or in full then contact the lender to which you owe the money. As part of the agreement you can request that a "Condition of settlement" be agreed to, which wipes the debt from your credit file once payment has been made. This can be arranged for disputed defaults.

Credit reference agencies are companies that compile the information on your credit history. There are 3 main credit agencies in the UK, they are : Experian, Equifax and Call Credit. All lenders will use a credit referencing agency to access your credit report when you make an application for credit. Your actual credit score and the information held on you by the three agencies may differ slightly.

Credit agencies compile their data on you, from the various companies with which you have held financial agreements both past and present.

This article explains your credit score. This website is about how banks and other lenders assess your "Credit Worthiness" (For want of a better phrase). The information put on our website can help boost your ability to get better credit. Using credit is something we all have to deal with in today's society. Mortgages, credit cards, mobile phone contracts: 21st century life demands we embrace credit.