"If people who have lived at your address before have had debt problems, this can affect your credit score.
MYTH: Although your current and previous addresses (usually going back five years) will be noted on your credit file, it should only contain details of your own credit agreements. Similarly, if you share an address with a flatmate, or family, their financial arrangements should not affect your credit score unless you linked financially – ie have a mortgage, credit card, or bank account with them.
Checking your credit file can harm your credit rating
MYTH: Apparently almost one in two people believe that checking their file will leave a "footprint" that can affect their credit rating. This is not the case – people can check as often as they like, and request reports from more than one agency. This information is not recorded or held.
Being registered to vote improves your credit score
TRUE: Lenders are extremely reluctant to lend to those whose name does not appear on the electoral roll. Being registered to vote at your current address will bolster your credit rating.
Being late with just one bill won't affect your credit score
MYTH: Paying any credit arrangement late – be it your mortgage, credit card bill, or mobile phone bill – will be recorded on your credit file, and is likely to have a detrimental effect on your rating. Since the credit crunch lenders have become far more cautious about who they will grant credit too, and even small infrequent misdemeanours could mean you will not be offered the keenest rate. Make a habit of this and future credit applications are likely to be rejected flat.
Your file won't show that you were turned down for credit
TRUE: Nine in 10 consumers think being rejected for a loan or credit card will adversely affect their credit rating. The truth is that this fact will not even be recorded on your credit file. However, ALL applications for credit will be recorded, and if there are numerous applications within a short space of time this can send alarm bells ringing – regardless of whether the credit has been granted or not.
It's only what I spend on my credit card that counts
MYTH: Credit files will keep a record of you credit limit – so if you have a £10,000 limit on your card this is what a lender will look at, even if you only spend and then repay £250 a month. This applies to all credit cards, bank accounts and loans. If the total available credit looks to large, compared to you income this will have a detrimental effect on your score. To rectify this problem close any old credit agreements. People often cut up their plastic but don't inform their provider they have a new credit card, so this credit line still sits on their file. Likewise if you have a large overdraft facility you never use you may want to reduce it"
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