If you have been refused credit, or are just curious about your credit report, read on for how to get that rating squeaky clean!

There are three credit ratings agencies – Experian, Equifax and Callcredit. Lenders supply them with information about their customers and they in turn can run checks on people applying for credit. Sometimes, lenders will only share information with one or two of the agencies, so it is worth obtaining copies of all three at least once a year. Each agency cannot charge you more than £2 for their statutory report. You should be able to do this online and may be asked for details such as name, date of birth and addresses for the past 6 years. Each agency also offers additional products like unlimited online access to your credit file (if you are really obsessed!) for a monthly fee.

If you find any mistakes on your credit file ask the agency to correct it. If you have been the victim of identity theft, a scheme launched last year means that you only need to contact one of the agencies and they will inform the other two.

If you feel that whilst something on your file is factually correct, it needs explaining because you feel it could adversely effect your rating, you can ask the agency to add a notice of correction to your file. An example may be for example if you missed a payment but had a valid reason for this. It won’t remove the fact that you missed a payment, but it will at least explain why.

Sometimes, really small things can impact your credit rating to such a degree that you get refused credit. For example, if your address is slightly incorrect on some of your accounts and credit cards, they may not show up on your credit file, meaning that you may only have dormant accounts or indeed no accounts which show up as "current" on your file!

It is a fallacy that the three agencies provide a credit score. All they do is to provide lenders with the information that they hold. Lenders then apply their own criteria to that data, which then enables them to decide whether to lend or not.

It is another myth that your credit rating could be affected by family member at the same address (unless you have a financial link with that person such as a joint credit card or mortgage).

Perhaps one of the strangest things that could negatively effect lenders’ views of you is the number of quotes and applications you make. The more times you apply for credit, the more often a lender asks for a copy of your file. Each time they do this, it leaves behind a footprint. Your credit file does not however records whether the application was successful so if you make lots of applications in a short time, it could look like you kept being turned down. This is why it is important to limit the number of credit cards you apply for.

Priya Kotecha (ACA, CertPFS) is a Chartered Accountant, with Mac Kotecha & Company, where her and the senior partner deal exclusively with dentists and have been established for over 27 years. They offer Accountancy, Taxation & Payroll services in addition to invaluable advice on practice management, buying/setting up a practice and other dental issues. Contact on 020 8346 0391 or go to www.specialistdentalaccountants.co.uk