Credit reference agencies Top 10 FAQ

What is a Credit Reference Agency?

The top 3 Credit reference Agencies in the UK are Callcredit, Equifax and Experian.  They are all a commercial organisation that holds information about you, which is then provided to banks and lenders that is used to help them decide whether or not to give you a loan/mortgage/credit, or whatever it may be.

Do Credit Reference Agencies have a blacklist?

No they do not, Crags don’t assess any of the information they hold about you.  It’s the lenders themselves who decide whether to grant you credit.

What information do they hold about me?

Your credit file will contain your financial information that stays on your file for as long as your account is still active, or for 6 years after it’s closed.  Information such as whether you have made payments on time and how much you still owe, details from the electoral used to confirm your identity and address, details of any bankruptcies and County Court Judgements and whether your house has been repossessed or you have moved away owing money. With your permission lenders are able to search the CRA database for information about you.  Each time a search takes place it will show up on your file.

My credit file has a score, what is this?

Most lenders will use the credit scoring system to help them decide whether or not to give you credit.  Points are given to certain information about you, such as income, debts and any previous credit history.

Can too many searches into my file damage my score in any way?
A vast amount of searches in a small amount of time can harm your credit file and rating.

Why does my file contain other people’s details?

Information contained about other people is only appears when you have a link with them, for example they lived at your current or previous address, or you share your surname, or they have lived as part of your family.  Lenders are able to use information about their accounts when deciding to give you credit, but you can oppose saying your not financially associated with these people and ask for their information to be erased from your file.

My credit file shows mistakes, can I do anything about them?

Yes you can.  You write to the Credit Reference Agency asking them to change or remove the entry in dispute, explaining what is wrong and sending evidence to back up your argument.  The CRA then has 28 days to act.

I was refused credit and they wont tell me why, is this right?

You don’t actually have any legal rights to be told why you were refused credit, although most lenders have now signed up to the industry’s Guide to Credit Scoring, which means they are expected to give you a broad reason why.

What happens if I don’t have any credit history?

If could be hard to get credit if you have no history but don’t despair, try starting small such as borrowing from your bank, so once you’ve built up a history you can switch to a bigger more significant deal. 

Can I get a copy of my credit file?

Yes you can, but you will need to send £2.00 to each credit reference agency giving details of your full name, date of birth and any previous names and address in the last 6 years.  They will send you the file within 7 working days.