If you have missed credit card, loan, or other credit repayments in the past due to illness of other such circumstances, then explaining this to the credit reference agencies could help.

If you’ve suffered marks on your credit report as a result of illness, then submitting a Notice Of Correction document detailing the reasons for the blemishes (for example if you defaulted on a loan payment due to illness) on your credit report can in some cases be taken into consideration by lenders, and help to boost your borrowing power.

Below you will find a sample letter highlighting the information that you’ll need to include in the notice of correction letter.

[Your address]

Experian
PO Box 9000
Nottingham
NG80 7WP

And

Equifax Plc
Capital House
25 Chapel Street
London
NW1 5DS
[Date]

Dear Sir/Madam,

Ref: [Your account number]

I would like to add a Notice of Correction to my account to explain the circumstances for defaulted payments.

Delete as appropriate

Electoral roll

I, [your name], would like it to be known that I am not registered on the Electoral roll at my present address because I am [insert reason, ie, have just moved house, am not a British Citizen]. I have been resident at the address since [date] and can provide documentation in the form of utility bills and/or bank statements stating this if required. I ask all lenders searching my credit report to take this into account.

Or

County Court Judgement

I, [your name], would like to explain the circumstances that led to the judgement dated [date].

I became [reason for missed payment, ie, unemployed/long-term sick/gave up work to look after sick relative] and my income was reduced to [amount], and therefore unfortunately I was unable to keep the original payment contract. I ask all lenders searching my credit report to take this into account.

I am now back in a position where I am regularly earning and am able to make regular repayments in the future.

Or

Missed credit payments

I, [name], would like to explain the circumstances that led to the late payments/defaults recorded against the account started on [date]. I became [reason for missed payment, ie, unemployed/long-term sick/gave up work to look after sick relative] and my income was reduced to [amount].

I unfortunately was unable to keep the original payment contract. I ask all lenders searching my credit report to take this into account.

I am now back in a position where I am regularly earning and am able to make regular repayments in the future.

Yours faithfully

[Your signature]