Your Credit File Explained
What is a credit report?
A credit report provides a snapshot of your credit accounts, repayment record and how well you are managing your finances. It contains information regarding credit facilities you currently hold or have held in the last six years and any applications you have made for credit recently.
Credit facilities can include credit and store cards, loans, mortgages, current accounts, mobile phone contracts and utilities (i.e. energy suppliers).
Lenders can look at your report only with your permission. They use it, along with information on your application, to decide whether to offer you credit. Lenders share information on what you owe, and whether you've paid on time. You agree to lenders obtaining and sharing information as part of an application for credit.
Why is having a good credit history important?
Your report shows what credit accounts you've had and whether you've made repayments on time and in full. Items such as missed or late payments can stay on your credit report for at least three years, while Court Judgments for non-payment of debts, Bankruptcies and Individual Voluntary Arrangements can show for up to six years.
As lenders take this information into account when assessing you for credit, this information may cause your application to be declined.
How are applications for credit assessed?
Credit scoring is the process most major banks and finance companies use when considering applications for credit. It takes into account information you provide in your application, any information the lender may already have about you and any information they receive from other organisations such as credit reference or fraud prevention agencies.
Credit scoring produces consistent decisions and is designed to make sure all applicants are treated fairly. Lenders may also have rules to decide whether they will lend which reflects their commercial experience and needs and ensures that they lend responsibly and that you can afford to repay the facility.
Can I check my credit report?
Keeping an eye on your general credit health is important. To help you do this you can take a look at your credit report held by the credit referencing agencies Experian, Equifax and Call Credit
Alternatively you can also request a copy of your credit report by telephone or post using the details below.
You need to provide all names and addresses for the last 6 years. A charge is made for a copy of your credit report:
| Experian | Equifax | Callcredit Limited |
|---|---|---|
Consumer Help Service Tel: 0844 481 0800 |
Credit File Advice Centre Tel: 08705992299 |
Consumer Services Tel: 08700601414 |