Credit rating bad from 1 debt that i didnt know of???

Hi, I have just checked my experian credit check which i have just paid for because i seem to be having trouble getting credit, or i get a high APR. I owned a house for 2 years which i never missed a payment on, and all my credit cards, loans from past and for now have all been paid off without fail, except for one, which is for £5 from Shop direct financial, which i am asuming is a catalogue. It says i have owed this for a good 3-4 years, but i have NEVER been written to about it or asked for it, therefore, how did i know i was supposed to pay it back? I need my credit rating to go up, at the moment its showing Very Poor, just from this one bill! How do i go about this? I will contact the Shop direct people first to clear this account with them, but then what do i need to do to get my credit rating up again? Contact Experian credit rating?? Please help!

Public Comments

1. Personally, I would just go on the experian site and refute the debt. I would say "this is not my debt". Then they have thirty days to either verify it or delete it. and dont forget to check your other two credit reports, too.
2. businesses report to credit bureaus usually on a quarterly basis, contact the business and get it taken care of , it will show it's paid the next time they report, but make sure it is your bill and not one that someone has done in your name if that is the case you can make a fraudulent claim on it
3. First of all, one bad debt for such a small amount will not result in a bad credit rating. Having said that, you need to contact Experian and file a protest to the entry. In the US, they have 30 days to confirm or delete the entry AND let any merchant that has requested your credit report of the change. In the meantime, you also need to contact Shop Direct Intl and ask them to explain the debt. If it is legitimate, you can negotiate with them - not only for payment - but to have the bad entry removed. Another thing to consider - make sure all your past debts that you paid faithfully are listed as well. Finally, (at least in the US), your credit score is much more important than any individual entry in any one credit bureau report. You need to get your credit report from the "Big Three" - Experian, Trans Union, and Equifax including your (Fair Isaac) credit score. In the US you can get a combined report at: https://www.annualcreditreport.com/cra/index.jsp You must stay on top of the process. I assume you're in the UK, so you need to find out what the law is there. Good Luck!
4. you have to track down what the debt is first of all and then if it is not yours or there has been an error you can contact experian to change your records but you need to know the facts first.
5. Ask Experion to remove this, as you do not owe them anything and have no idea about this company who has recorded this debt.