Credit Reference Agencies

Information gathered from a credit reference agency (the name of which the lender is obliged to reveal on request) may count towards a calculation of your credit score. Credit reference agencies hold information on most adults in the UK including registered addresses, registration on the Electoral Role, any County Court Judgements (CCJs) and bankruptcies or insolvencies as well as any previous loan application requests. The mark put on your file each time your credit report is checked due to loan or credit requests will stay for up to 24 months, depending on which credit reference agency is used.

Any time you borrow money or take out a credit card, information about your payments, including whether they were made on time or were late, is recorded on your credit report. Having a loan and making all the repayments on time can have a very positive effect on your credit score as it allows future lenders to see that you are a reliable customer. This means they will be more inclined to accept an application for a loan or mortgage from you. People who have never had any form of credit may therefore find it difficult to be accepted for a loan. Similarly, those who have had credit and missed payments but did not communicate the reasons why to their lender will have a difficult time persuading other lenders to lend them money.

However, a credit report from a credit reference agency is not the only factor that lenders consider when assessing loan applications; other things such as verification of identity, how long you have lived at your current address, whether or not you are a homeowner, your age and employment record can all be equally important factors.