Lenders use your credit report to understand your financial behaviour. Here’s exactly what you’re profile says about you.
In the UK there are three main credit reference agencies that collect information on how you manage your credit; Experian, Equifax and Callcredit.
Each will produce a credit report which they provide to lenders that want to check out your financial behaviour before approving a credit agreement like a loan, credit card or mortgage.
But what exactly are lenders looking at when they access this information? We’ve broken down just what you've got on show.
What your credit report reveals about you
You should regularly check your credit report at all three credit reference agencies as the information held can vary, but typically details will include:
Basic personal information - All of the reports will detail basic information like your full name and date of birth as well as your current address. If any of this information is wrong on your file your application for credit is likely to be rejected.
Financial account information - Your current and (with Experian and Equifax) past credit agreements will also be listed. This will include bank and credit card accounts, but also mobile phone contracts, utility contracts, insurance contracts and loan agreements like your mortgage. The information held on each account will show how much you owe and whether you have made repayments on time and in full. Missed or late payments will stay on your record for at least six years.
[SPOTLIGHT]Address history - Details of your current address as well as previous addresses and how long you have been known to be at each one will be listed. Any gaps or inaccurate information won't sit well with lenders.
Financial associations - Your report will also include the details of anyone that is financially linked to you. These connections are formed when you take out a joint credit product like a mortgage. Lenders will sometimes use your associate’s data when making decisions on whether to give you credit.
Previous searches - A footprint of your previous credit searches for things like insurance, credit cards and loans will also show up in your credit report. Too many searches are sometimes considered a bad thing by lenders, but the information is also a handy indicator if someone else is using your information to apply for credit.
Electoral roll registration - Your report also shows whether you‘re registered on the electoral roll at your current address. Getting registered enables you to vote in elections, but is also vital when applying for credit as it confirms you are who you say you are.
Public record information - Details of any bankruptcies, insolvencies, county court judgements, debt relief orders or individual voluntary arrangements will also be included on your profile, which can indicate you have a history of debt problems.
CIFAS - CIFAS is the UK’s fraud prevention service and your credit report will provide warnings of fraud related to your current address or your personal details. This might occur if you become a victim of identity theft where someone is impersonating you in order to take out credit.
GAIN records - Equifax and Experian have a section on your report for GAIN (Gone Away Information Network) records. Members of the network can submit details about individuals who have moved home and left behind a credit account which is at least 30 days in arrears, without notifying the lender of a forwarding address.
Notices of Correction - You can request a Notice of Correction to be included on your report if there is something showing up on your profile that is incorrect or misleading. These must be added to your report by the appropriate reference agency.
Getting a copy of your credit report
You can request a copy of your ‘statutory credit file’ from any of the agencies online or by post for £2.
Experian and Equifax, both offer a full report and a service to monitor your information and provides alerts, which you can get for free with a 30-day trail. Once the trial period ends a monthly fee will apply so you’ll need to cancel if you don’t want to start paying for it.
Callcredit, under the brand Noddle, offers a free report for life.
Get a free trial with Experian thanks to lovemoney.com
More on your credit profile:
How to repair your credit rating in 2014
Best credit cards if you have a bad credit history
The costly credit report blunder that meant I was rejected
How a poor credit rating can cost you an extra £1,200 a year