Your credit report explained What is a credit report?

Your credit report contains information about your past dealings with lenders

Many people become anxious when credit reports, credit scores and credit histories are mentioned. This is because the mystery surrounding them causes a great deal of confusion.

Contrary to popular belief, there is no such thing as a credit ‘blacklist’. Nor does any individual have a single credit ‘score’ or a number that lenders will use when deciding whether to let them borrow.

Instead, when you apply for credit, lenders have access to your credit report - also known as your credit file. This consists of information about your past financial behaviour; that is, your credit history.

Anytime you try to get a loan, credit card or mortgage, your credit report will be used to help work out whether your application should be approved or rejected.

Who’s in charge of my credit report?

There are three credit reference agencies in the UK: CallCredit, Equifax and Experian. These commercial organisations all compile information about you and, when you apply for credit, will supply this to your chosen lender.

Effectively, there are likely to be three slightly different ‘versions’ of your credit report in existence. This is because lenders don’t always communicate the same information to all three credit reference agencies.

For this reason, when it comes to checking your credit report, it’s important to examine the information held on you by CallCredit, Equifax and Experian – not just a single agency.

It’s also worth being aware that third party firms who claim to bring together all the information held on you by the credit reference agencies may not have access to the full details from each one. Therefore, you may want to approach these with caution; the only way to be certain of what is contained in your credit reports is to obtain them yourself.

What information is included in my credit report?

Some of the information held in your credit report will come from banks, building societies and credit card companies you have borrowed from in the past (or that you currently owe money to).

Other facts on your credit file may come from publicly available sources (such as the electoral register), or be supplied by mobile phone companies and even mail-order firms.

Specifically, your credit report will contain details of when you have borrowed money and whether you have repaid it on time. Your credit report is likely to feature information including:

• Your name and address;
• Whether you are on the electoral roll at your current address;
• How much you currently owe lenders;
• Details of any joint financial products you hold (e.g. a current account);
• Whether you have made any late payments on existing or past credit card or loan accounts;
• Whether you have missed payments on existing or past accounts;
• Whether you have had any County Court Judgments (CCJs) made against you;
• Whether your home has been repossessed or you have moved away owing money;
• Whether you have been declared bankrupt or entered into an Individual Voluntary Arrangement (IVA).

While your credit file stores a variety of information, it will not retain details of all your financial behaviour indefinitely.

Many of the facts featured in your credit report will be wiped from it after a certain period of time has elapsed, circumstances allowing. For example: a missed payment on your credit card will usually be visible on your credit report for 36 months, while details of a CCJ or bankruptcy should remain on your file for six years.