10 ways to clean up your credit history in 2007

The way you've handled credit - such as cards, loans and mortgages - in the past can have a real impact on your chances of borrowing what you need in the future. These simple tips should help to improve your credit rating.

1. Understand your credit report
Your credit report is the core of your financial CV. It lists the credit you have and your repayment history, alongside information such as any court judgments against you and whether you've been bankrupt. Lenders check it when deciding whether to make you an offer, so you need to know what's there and how it affects you before you can make any improvements.

2. Tidy up the details
Is everything in your report up to date? Does it accurately reflect your circumstances? If you disagree with anything, contact the relevant lender, explain the problem and ask them to remove or amend the entry.

3. Protect your ID
If you notice something strange, such as a loan application you didn't make, you could be a victim of ID fraud and a criminal could be using your name to take out credit. Get in touch with the lender at once and tell them about it. You can also contact Experian, the credit reference agency, which offers a free service to help victims of fraud.

4. Register to vote
And that means at your current address. Lenders use the electoral register to check that you are who you say you are and live where you claim to live, as a protection against potential fraud. If you aren't registered or are still at a previous address, they may ask for proof of your identity and address, or even turn your application down.

5. Assert your independence
Your credit report has a section listing your financial associates - people with whom you share a joint account, such as a mortgage or credit card. When you apply for credit, lenders may also check these people's credit reports, in case their financial situation makes it difficult for you to repay what you owe. So if you are separated or divorced, you should also separate your finances, tell your lenders and let Experian know. Credit reference agencies will share the information.