Everything in your financial history can affect your chances of being granted credit or a loan. If you understand your credit record, you can improve it - and your finances.

Credit is essential in the 21st century - it's often the route to homes, cars, travel, furniture and much more. The key to getting access to the money you want, when you need it, is your credit report.

Your credit report is your personal financial history, covering a wide range of information, such as your credit card payments, details of loans and previous mortgages and a record of any court judgments or Scottish decrees. It also confirms whether or not your name is recorded on the electoral roll at your current address and specifies which organisations have searched your credit report.

Organisations take this information, plus data from your application form, to generate a credit score - a number that they use to estimate the likelihood that youwill repay what you owe and make your repayments on time. The information in your report and the score help them to decide whether or not to grant a loanand to set conditions such as interest rates.

Every organisation uses a slightly different formula to work out your credit score, which can even vary depending on the type of finance you want. Every loan application you make can therefore generate a different credit score. Your credit score will also change as your circumstances and the information in your credit report change.

In general, a higher score means you will find it easier to get the money you need. A poor score can result in a rejection or adversely affect the terms. For example, it can mean that you pay a higher rate of interest.

Following these simple steps could lead to a marked improvement in your credit report and increase your credit score, which will help you to get the loan or credit card you need.

Click here to read in detail the following steps...

• Check your credit report
• Set the record straight
• Protect your identity.
• Keep the record straight.
• Don't leave unnecessary footprints.
• Tell the truth.
• Don't let debts pile up.
• Avoid credit repair companies.
• Order your national credit score.
• Keep on checking.