Gross lending totals (which includes home buyers and remortgages), rose to £13.1 billion which is a 15% increase on May’s figure, making it the largest monthly figure so far this year.

This new rise in mortgage lending has prompted suggestions of improved economic growth, but experts warn that this rise is purely a seasonal shift and cannot be sustained for the long term.

The upcoming cuts in the public sector along with the increase in VAT to 20%, additional tax rises and a potential freeze on wage increase are all expected to have a negative effect on the housing market.

Paul Samter, economist at CML, says: “There are signs of house prices stabilising and more properties coming on to the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.”

Previously, consumers were only able to gain access to their statutory credit report in paper form for a £2 fee.

But in a move to make access to credit information easier and faster, the Government has forced the three main credit agencies to make the reports available online for a statutory fee of £2.

The new changes also mean that consumers who have been victims of identity fraud or are seeking debt advice will be able to check their credit report online free of charge.

Your personal credit report will allow you to monitor your financial commitments by viewing, for example, what credit commitments you have outstanding and any late payments you have made.

It is also important to know what it says as the information held on your credit report will affect your ability to access mortgage or credit card deals in the future.

All lenders use data from at least one of the above agencies when assessing your file, so if the information is inaccurate you risk being rejected through no fault of your own.

Following on from our previous guides on how to improve and build a strong credit score, here’s a run down of 10 financial decisions you could make that would end up hurting your overall credit rating.

1. Not paying your bills

Not paying or completely ignoring your credit card bills is a quick and easy way to ruin your credit rating.

2. Paying your bills late

What lenders look for when deciding to approve a new request for credit, is the applicants  ability to pay back the debt consistently and on time. By regularly paying your bills late or overdue you’ll quickly begin to hurt your credit rating.

3. Defaulting on a loan

By not making regular payments towards your loan or credit cards you will receive a default notice. Default notices are listed on your credit report and will have a negative effect on your credit score and therefore make it harder for you to get credit in the future.

4. Having credit accounts sent to collections

Many creditors often use the services of third-party debt collectors to recover payments that have been unpaid. A collection status on your account shows that the creditor have themselves given up chasing the payment and have instead hired someone else to reclaim the debt.

5. Having your home repossessed

If you get behind on your mortgage payments your lender will seek to repossess your home. In turn, the late payments on your mortgage will have a negative impact on your credit score and make it harder in the future for you to be approved for a mortgage loan.

Here’s a run down of 7 credit repair mistakes that you’ll want to avoid making.

1. Cancelling a current credit card account

Many people don’t realise that closing a credit card account can be a bad decision for your credit rating – especially if the account currently has a balance or if it’s one of your long standing credit cards.

2. Avoid disputing everything on your credit report

Many credit repair companies often take this approach, but there are a few problems with trying to repair your credit rating in this manner. First of all it’s not entirely believable. If you decide to dispute too many items on your credit report then the credit agencies in questions could simply dismiss your claims as frivolous.

Also, it often isn’t in your best interests to have all entries removed as positive accounts on your file will be actually helping your credit rating as they’ll show an example of regularly payments and a cleared debt.

3. Missing some debt payments to pay others

Whilst prioritising your debts is often a good idea, skipping payments in favour of others isn’t. In order to improve your credit score you need to make sure that you don’t miss repayments, if you continue to have late or missed payments then you’ll find your credit score will get worse rather than improve.

4. Send credit agency letters via recorded delivery

If you need to send a letter to any credit report agency, collection agency or lenders, it is always a good idea to send the letter via recorded delivery. This ensures that you have proof that the letter has been both sent and received.

5. Using bankruptcy as a credit repair tactic

Bankruptcy should not be used as a means to repair a credit rating. Filing for bankruptcy will not have a positive effect on your credit rating and will in most cases have a negative effect.

6. Cutting up your store cards and credit cards

A lot of people who experience bad credit often decide to stop using their credit or store cards. But, by using these forms of credit responsibly and paying the monthly payments on time they can help to rebuild your credit as you progress through the repair process.

7. Not requesting your credit report

When setting out to repair credit checking your credit report should be the first thing on your list. By getting a copy of your credit report from the 3 main UK agencies (Equifax, Experian and CallCredit) you’ll be able to easily work out which entries and areas you need to focus on in order to improve your credit.

Without having a look through your credit report it will be a lot harder to spot any troublesome areas.

If you’re still not convinced that you need to maintain a healthy credit score, then here’s 5 solid reasons why you should improve your credit rating.

1. Remove the financial burden on your partner

When you’re in a situation where one partner has a better credit score , the spouse with the ‘good credit rating’ is often the one having to make the loan and credit card applications. By improving your own credit you will help to bear some of the credit-burden rather than having your partner bear the load themselves.

2. No need for co-signers

When you have a poor credit rating you will often need someone to co-sign  for any loans or credit cards you apply for. This puts financial pressure on the individual who co-signs your credit application and they don’t receive any of the benefit. By repairing your credit not only will you save time with any future applications, but you’ll also remove the hassle of having to burden someone else with co-signatures.

3. Save money on higher interest payments

In some cases low credit ratings mean you haver to endure higher interest charges which in turn means higher charges on your credit card balances. By repairing your credit you’ll open yourself up to receiving better deals and a more competitive interest rate from lenders.

4. Increase your credit limit

As you begin to pay your bills on time, in most cases your creditors will take note and increase your credit limit. But before applying the new limit, the credit card issuer will often consult your credit report, if you have a bad credit history then you might even see your credit limit reduced, which in turn will give you less room to make purchases.

5. Get approved for a mortgage

Many banks and lenders won’t offer a mortgage to band lenders, and those that do approve people with bad credit often only offer mortgages with a high interest rate which in turn makes home ownership cost a lot more.

But as the popularity of social networks continues to rise, such services are beginning to appeal to fraudsters looking for ways to steal peoples’ identities and information that’ll help them fraudulently apply for credit.

The chances are, unless you frequently check your credit report you won’t realise you’ve become a victim of identity theft until you find yourself refused credit or have a purchase declined.

But there are a few precautions you can take to help keep you and your personal details safe while you socialise online.

1. Be aware of what information you reveal about yourself

Be vigilant as to what personal information you display on your networking pages. For example to leave your email address, date of birth, telephone numbers or your pet’s or family names clearly visible. If fraudsters can get hold of enough different types of your personal information, it makes it that much easier to successfully set up a new credit account in your name or even to make a guess at your private banking or credit card card accounts. How many people have their mothers maiden name or pet’s name as a security question?

2. Look out for phishing email and messages

By now everybody should be deleting emails from banks and other official looking organisations that are requesting passwords and login details in order to ‘restore access to your accounts”. But similarly you should also be on the look out for any unexpected pop-up boxes or windows that request your personal information too.

3. Don’t share your passwords with others

It does sound like a fairly tip, but you’d be surprised how many people do indeed share their passwords with others.

4. Regularly check your personal information is safe

Just because you’re careful with the information you share online, it’s important not to just assume that your personal info is safe.

For added peace of mind you should be regularly checking your credit report to look for any unusual or fraudulent applications. Your credit report will contain your personal history of credit such as loans, credit cards, store cards, mortgages, and mobile phone contracts.

Most importantly, your credit report will also include details on any new credit applications. A potential new Lender will search and leave a record on your credit report whenever you apply for credit, so should anyone try to borrow money or make purchases on credit in your name, you’ll be able to notice the fraud and stop is quickly.

According to Section 7 of the Data Protection Act 1998 each of the main UK credit agencies (Experian, Equifax, and CallCredit) are obligated by law to send you a copy of your statutory credit report within 7 days of receiving both your request and your £2 payment.

As you might find the each credit reference agency stores different information regarding your personal credit, it is always a good idea to request a copy from each agency.

What exactly is a Statutory Credit Report?

Statutory credit reports are sometimes referred to as ‘Yearly Credit Reports’, ‘£2 Credit Reports’, or ‘Annual Credit Reports’. This is mainly due to the fact that each credit reference agency is only required to provide you with a copy of your report when a “reasonable interval has elapsed between compliance with the previous request and the making of the current request”.

A reasonable period if generally seen as being a period of 12 months, hence the annual credit report terms. Not matter how many times you order your credit report or from what agency, a price of £2 is legally set for each copy.

How to apply for your Statutory Credit Report

The information and application forms for ordering your statutory credit report are not always easy to find on the credit reference agency websites. So we’ve taken the time below to put together the links to the various information and online ordering tools you need to successfully request a copy of your statutory credit report from each of the 3 main agencies (Experian, Equifax, and CallCredit).

Experian Statutory Credit Report (CreditExpert)

Fill in the form on this page to order a copy of your credit report from Experian for just £2.

If you’d prefer to order by post that you can download a copy of their printable Experian statutory credit report application form and post it to the following address (along with a cheque or postal order for £2):
Consumer Help Service, Experian Limited, PO BOX 8000, Nottingham NG80 7WF.

Equifax Statutory Credit Report

T order a copy of your statutory credit report from Equifax then you can complete this online application form, submit payment and you should receive the report within 7 days.

If you prefer to order by post you can download a copy of the printable Equifax application form. The printed form should be mailed (along with a cheque or postal order for £2) to: Equifax Plc. Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US

Callcredit Statutory Credit Report

At the moment it is only possible to apply for a £2 Callcredit report by printing and mailing a copy of the Callcredit statutory report application form.

The printed form should be mailed (along with a cheque or postal order for £2) to: Consumer Services Team, Callcredit Limited, PO Box 491, Leeds, LS3 1WZ



So what can you do to make sure you don’t become an ID fraud statistic? Well luckily there’s a few ways you can help to protect yourself and your information.

Here’s a run down of 10 things you can do to help guard against ID fraud.

1. Report all thefts of financial items

If you should lose your wallet or misplace any important documents like your passport or drivers license, then it is important that you contact the relevant organisations as soon as possible. They’ll in turn cancel any credit cards, store cards and stop anyone else from trying to use them.

2. Regularly check your bank and credit card statements

By being vigilant and monitoring closely what charges are on your monthly bills you’ll be far better positioned to spot any errors or potential fraudulent transactions.

3. Shred or destroy personal information

Financial statements are pure gold for an ID fraudster, so it is vital you shred or destroy any documents containing your personal information prior to throwing them in the bin.

4. Be wary of cold callers

It is important not to respond to cold callers or emails requesting sensitive information such as credit card numbers of banking details.

5. Register to vote

If you’re not already registered to vote, then it is important that you are listed on the electoral roll. Not only will this give your credit rating a lift, it’ll also prevent any ID thieves from using your previous address to open new credit accounts and run up debts in your name.

6. Be careful online

Be aware of just how much information you give away online, especially on social networks. For example your pet’s names, mother’s maiden names are often standard questions used in the retrieval of passwords.

7. Redirect your mail

If you’re planning on moving home then setting up a mail redirect with the Post Office will ensure that you receive all the post from your old address.

8. Protect your PINS and passwords

Try and memorize your passwords and PINS rather than having them written down somewhere. As a precaution never share them with others.

9. Keep an eye on your mail

If you get into a routine of knowing when various bills and statements arrive then you will be better positioned to spot any that are missing, and have the ability to act quicker.

10. Check your Credit Report

The Home Office recommends that individuals regularly check their credit reports as effective protection against ID fraud. Your credit report will list the various credit accounts you currently have in your name, and the amounts you owe. With this information you’ll be able to quickly identify any fraudulent applications or transactions that you didn’t make.

When applying for credit you have to prove to the lenders that you are in full control of your finances and have proven in the past that you can be relied upon to make the repayments on time and in full.

If you’re thinking of making an application for credit, or have just been refused credit, then try not to panic – there are steps you can take to overcome this issue.

First off all you’ll need to grab a copy of the credit report. Checking your credit report is probably the best place to start as your report will contain lists of your previous borrowings aswell as giving you an idea of how well you’ve been managing your repayments.

Your credit report will provide you with a snapshot of your credit history, including all the credit accounts you’ve used and applied for in the past few years along with repayment information.

Many people underestimate just how important their credit report is, but it is the first thing many lenders check before approving any form of credit. In that respect it is crucial that your credit report is up to date and accurate.

If you spot some worrying trends on your credit report, mainly missed payments, default notices or CCJ’s, then you’ll have to look at ways you can improve your current credit rating before you’ll be approved for any future lines of credit.

Here are a few steps you can take to put yourself on the path to a healthy credit score.

Manage your finances

If you aren’t already doing so, make sure you start repaying your bills, credit card, loans, or mortgage repayments on time. By not doing so you’re only damaging your credit rating more, and in most cases incurring late payment fees and interest which only adds to the debt.

Check your credit report regularly

By keeping a close eye on your credit report and monitoring it regularly you stand a better chance of noticing any errors or incorrect entries that may appear. For example a single incorrect entry could result in a rejected credit application.

Talk to your lenders

If you’re struggling with repayments, then it’s always worth giving your lenders a call. In most cases they’ll help you to workout a schedule of repayments that you can afford or even offer a temporary payment holiday until you get back on your feet.

Don’t keep borrowing

If you are struggling with debt, then it’s important you stop borrowing. If you continue to increase the debts that you can’t manage, then that in turn will cause you to be rejected for any future credit that you might actually really need.

Topping the list of 121 localities in Britain is Sunderland, which has been listed as the most “at risk” area.

The research published today helps to highlight the scale to which fraudulent activity takes place across the UK.

A spokesman for Callcredit commented that: “The research shows the extent to which all areas of the UK now find themselves exposed to fraud but what really stands out is how the levels of risk are constantly changing. It’s important to be aware of the risk and to do what you can to protect yourself from falling victim. By checking your credit report you can see if you’ve been a victim of fraud and take the necessary steps to minimise any further risk.”

Over half of the top ten cities on the list are based in the north, including Manchester, Oldham and Middlesbrough.

According to the research findings, south-east areas such as Guildford, Kingston and St Albans have been least affected by fraud – with people living in London found to be less at risk of Identity fraud compared two two years ago. Only three London districts are in the top 10 of worst affected areas compared to 8 districts that were listed in the 2008 report.

Latest fraud statistics show that ID fraud costs the UK a whopping £30bn a year, with credit card fraud totalling £440m in 2009.

So what can you do to protect yourself against ID fraud? Well, first of all don’t just throw away old statements and documents with your details on. Paper shredders are extremely affordable these days and help to cut the risk of your discarded letters ending up in the wrong hands.

It is also important that you keep an eye on your credit file to watch out for any unusual entries or credit applications that you haven’t applied for. You can obtain a copy of your credit report from the three credit reference agencies in the UK: Callcredit, Experian and Equifax.