It would great, wouldn't it, if you could just pay to improve a person's credit score, rather than having to work on it over time.

But the truth is it just cannot happen.

A person's credit score is calculated by credit reference agencies such as Experian and Equifax based on data provided to them by lenders. It is not worked out any other way.

What about using a 'credit repair' service

A quick online search will reveal companies which specialise in 'credit repair' and charge a fee for their services.

Beware of them. It isn't a case of handing over some money and then sitting back while your credit score rises.

A credit repair firm, if they do anything at all, will only carry out basic tasks which you can do yourself for free.

And whatever they promise, they cannot remove bona fide records of missed payments or County Court Judgements before they naturally disappear from your credit file. No-one can.

But you CAN ask to have errors corrected within your credit file. We'll tackle that in a moment.

For now, rest assured a credit repair firm cannot magically repair your credit or increase your credit score.

You can do it yourself

There are steps you can take now to potentially increase your credit score. But, the first thing you need to do is to get a copy of your credit report.

You have a couple of options here. You can sign up for one of the free services from the credit reference agencies, Experian for example, and use their monthly subscription to check your report.

Alternatively, you can order a copy of your Statutory Credit Report which can be ordered either online or by post from any of the agencies for a fee of £2. MoneySavingExpert also offers a 'CreditClub' that includes free access to your credit report.

I can't be bothered to do this

Think twice about using a credit repair company even if it seems like an easy solution. Yes, paying a third party to examine your credit file and flag up any errors will save you some time and effort, but is it worth the expense? And remember that some of these companies have less-than-stellar reputations for providing value-for-money.

What's in a credit report?

A credit report is a record of your borrowing over the past six years including how reliably you paid back any loans, you basic details (age, addresses, previous addresses, gender and age), how much you've borrowed and when, what sort of credit it was, any outstanding balances plus public information such as any County Court Judgements or High Court Judgements issued against you.

Also, remember that credit reports can now include a record of your rental payments. Find out more.

Once you have your credit report

The first thing is to check for any errors. These seldom happen but if does then it can be very bad for your credit score Good examples include a debt that has been paid off but hasn't been noted or a Country Court Judgement issued against someone else but added to your file in error.

If this is the case, supplying the lenders and the credit reference agency with evidence to highlight their mistake should get the erroneous data removed which could then boost your credit score.

In most cases, however, the data in your report will be correct so you need to take other steps to increase your credit score.

Long-term solutions

When thinking about repairing or increasing your credit score you have to realise there are no quick fixes. Unless, as we've already discussed, you uncover an error.

The obvious things you can do is to start paying off any outstanding debt. This is of course easier said than done but, if you can save a lump sum, settle an outstanding account of your credit file.

You can also improve your score by taking out a low limit credit card and paying off the balance each month but there is a risk of increasing your debt rather than your credit score. So, do your research and take advice before going down that route.

Can a letting agent or employer see my credit score?

Any organisation can apply to see you credit score if you give them permission to do so including landlords, letting agents and employers.

The easy solution

The best strategies are always the simplest and one way you can start to build your credit score is by registering for our free rent exchange service.

By paying your rent as normal every month you can start to build your credit score.

You can learn more here.

CreditLadder can help you improve your credit score

If you want to improve your credit position by reporting your rent payments, CreditLadder is the only way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.

CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the information provided in this article is for information purposes only and should not be considered as advice.