Consumers can now access their statutory credit report online for just £2, thanks to an agreement between the Department for Business, Innovation and Skills and the three major UK credit reference agencies: Experian, Equifax, and Callcredit.

Meanwhile, both victims of identity fraud and people who are classed as financially vulnerable can view their reports free of charge.

Peter Vicary-Smith, chief executive of consumer group Which?, said: "This should provide quicker and more convenient access for consumers to their credit file, and could encourage more people to check their files more regularly."

Checking your credit report allows you to monitor your financial arrangements by viewing, for example, what credit commitments you have outstanding and any late payments you have made.

It is important to know what it says as the information held on your credit report will affect your ability to access mortgage or credit card deals in the future.

Looking over your file regularly can also help you to nip any fraudulent activity in the bud - and spot any mistakes made by lenders, for example.

After all, as all lenders use data from at least one of the above agencies when assessing your file, you risk being rejected through no fault of your own if the information is inaccurate.

Vicary-Smith added: "This agreement between the government and the credit agencies is a welcome initiative in the battle against fraud and the elimination of faulty data."

Not all the black marks on the average Briton's credit file are down to errors or fraud, though, especially in these post-recession times

Millions of Britons with credit cards, loans and mortgages have missed a payment at some point in the last year or so, while many more have had to resort to more extreme measures to solve their debt problems.

There are steps you can take to improve your credit score, however.

If you are not already listed, then perhaps the easiest way to improve your credit score is to sign up to the Electoral Roll.

Stability is seen as a plus by lenders, so staying with the same employer, bank and at the same address for a while all help too, while checking that the address the agencies have for you is up to date on all your accounts is also a good idea as having more than one can stymie credit applications.

Meanwhile, things that can have a negative impact on your score include generating lots of searches on your name by applying for lots of financial products in a short time, while getting rejected for credit is also bad news.

It is therefore a good idea to avoid this by not applying for the 'best buy' deals if you know it is unlikely you will qualify.

Other steps to take include paying off any outstanding debts as quickly as possible, cancelling unused credit cards and accounts to slash the amount of credit you have access to and taking out a credit-building credit card - as long as you then behave like a model customer.

Cards of this kind, which can also be useful for people with no credit history - and therefore no repayment track record, include Barclaycard Initial at 29.9% and the Capital One Classic and Progress cards at 34.9%.

And if that does not appeal, you can make progress on rebuilding your credit score simply by managing your existing accounts in a way that ensures you never miss a payment or go over your credit limit.

When repaying credit cards, for example, the simplest method is to set up a Direct Debit to repay the full – or a set - amount each month.

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