What is a Credit Reference Agency?

As an adult living in the UK you are probably aware that your name and details are on file with three different companies. Experian, Equifax, and Callcredit are all credit reference agencies that will keep you details on file for things like loans, credit cards, and previous addresses. What they are doing is keeping any information on you that you have created financially throughout your life to help the lenders ascertain any risk that you are going to pose. In other words when you fill out an application for a loan, credit card, or other financial assistance the lender is going to refer to the three credit reference agencies to find out your credit score and determine your risk for that money.

Here’s a little more on what information they will look at. First any information that is public record such as the electoral roll, county court judgements or any bankruptcies that are held against you are going to be displayed on the credit report the credit reference agencies generate. Then you will see credit account information. This information is going to detail your current credit agreements. In other words any open accounts that you have such as credit cards, loans, student loans, and mortgages are going to be listed on the credit reference agency reports. Most of the information is going to be at least six years back. This means any closed accounts that you have paid off can also be on the report. Lastly any other credit checks that have been made on you will be listed. Credit checks are what companies such as lenders will do to find out your information. These companies are listed and allow the lender you are currently working with see any other applications. You are also able to see if other applications have been sought, and this is where you can usually see identity theft or credit card fraud that may have happened against you.

It is important and your legal right to see your credit report. You will be able to correct anything on the report that is wrong. For instance if you have a credit card open in your name, but you did not apply for the card nor do you hold the card you can request that the item be investigated for fraud and removed from the card. You should ask to see your credit report at least once a year to correct any issues that could happen. Mistakes do happen as well. You can also see what information the lenders have available to them in your name. You should also only apply for several cards or loans at once to avoid any negative effects that could show up. In fact if you were to apply for a credit card every fourteen days you would be hit for points for each credit check. In a fourteen day period you only get hit once for every application you submit. This saves you in points and helps increase your overall appearance.