A bad credit risk? How to check if your number is up

Although the average debt per person in Britain amounts to nearly £23,000, most people are clueless when it comes to the contents of their credit report, according to creditexpert.co.uk, part of credit reference agency Experian.

Credit reports, as well as reflecting an individual's borrowing history and circumstances, also provide a credit score ranked up to 1,000 and are used by lenders to assess the risk of lending to that individual.

The average National Credit Score - based on an analysis of more than 100,000 borrowers - is 763, the equivalent of a moderate risk for lenders, says the agency. But this varies with both gender and location. Men are in general a better risk than women and there are more people in the South West with an excellent score (over 960) than anywhere else in the country. Borrowers in London, on the other hand, find it more difficult to get the best rates on their credit - only 13 per cent of them have an excellent score. For a free estimate of your number visit checkmyfile.com.

Whatever your number, here are some ways to improve your score:

· Keep an eye on your credit report and make sure that there's nothing in it that you don't recognise. You can get your credit record sent to you in the post for £2 from any of the credit reference agencies. You pay more to be able to view it online. One website, annualcreditreport.co.uk, lets you check your report online for free, but at the moment this service is limited to only a few areas of the country.

· Make sure you are on the electoral register each time you move.

· Keep up with monthly repayments on any outstanding debt.

· If you see that anything is incorrect on your record, make sure you set the record straight by adding a notice of correction to your file.

· If you are shopping around for credit ask companies for a quotation before making a formal application, as every search is recorded on your credit record.