1. Credit Reports on Companies
It is probably true that the majority of credit
reports in the UK will be taken out on private
individuals, people who are applying for credit
cards, overdrafts, personal loans or
mortgages.

2. However, most companies will at one time or
another employ one of the big three credit
reference agencies to supply credit reports on
companies, if an existing business customer
asks for extended credit terms or if a new
customer applies.
It is typical to send an application form to new
customers, which they must complete, sign and
return, before a credit report can be ordered. If
the customer’s business is set up as a limited
company or PLC, then Companies House, which
is the UK’s register of companies, will hold
information on a company’s annual turnover and
other financial data that is filed when a business
reports on their annual trading results.

3. Companies House also provides basic credit
reports that allow a seller to see, if credit terms
can be made available to a customer. Names of
directors will be shown as well as any county
court judgements against the customer.
However, credit reference agencies provide
more detailed credit reports.
It is important to check details thoroughly and to
investigate further, if a large amount of credit
has been requested; extended credit terms will
result in invoices accumulating quickly and your
new customer will run up a large debt. If in
doubt, ask for more information, such as
references from other suppliers of goods or
services your new customer has been dealing
with for a period of time.

4. Be sure to follow up on all references and have a list of
questions ready: is your new customer a regular payer,
how long does it take before they settle their invoices
and are there any outstanding disputes you should know
about? If other creditors are about to take your new
customer to court, you don’t want to give any credit
terms, no matter how good the last three annual reports
looked!
It is also possible to ask UK credit reference agencies to
supply international credit reports. These can be very
costly and take far longer to compile; most basic reports
are rarely worth the effort, as they confirm only details
such as trading addresses and names of directors. They
do, however, give an indication of how much credit can
safely be given to a customer.

5. Can prepaid Credit Cards help to
repair Credit Score UK Ratings?
• Most prepaid credit cards won’t help you
to repair your credit card rating, as you are
not building up a positive credit history.
You are simply using them like any other
debit card, where money is already sitting
in an “account” and a charge is made
against without any element of “credit”
being part of the transaction.

6. Your credit score UK rating is determined by a number of
factors: one of them is to make regular repayments for
loans or credit cards. Lenders will see that you are
trustworthy and a regular payer, capable of taking
charge of your financial affairs after a spell where you
lost control. Sometimes this loss of control was not your
fault; you may have been made redundant or been ill for
a long time, which meant earning less money or nothing
at all.
Some prepaid credit cards do have an element of “credit” in
that you are allowed a small amount of credit after you
have built up a positive credit history with your provider
over a period of at least six months. Most prepaid cards
are not like that though and before applying for one, you
should read the terms and conditions thoroughly. There
is no point taking out such a card, if it will not improve
your credit score.

7. • You may have more luck with some of the mobile phone
providers, where a mobile phone is part of the deal and
is repaid over a period of time with every monthly
payment made. While part of your monthly direct debit
payment will simply deal with the prepayment of your line
rental, mobile charges and the repayment of the phone
represent a “credit” element.
• Only part of your mobile charges are prepaid; if you
make calls through other network providers there is
usually a charge and this will show on your next bill.
This, together with the repayment of the phone, is the
“credit” element; repaying it by direct debit every month
will help you to built up a positive credit history.
http://creditreport24.co.uk