A credit reference file is kept by authorised companies and contains details of all your financial history regarding credit applications and of credit you have borrowed.
What information do they hold?
Whilst they hold a number of different information the main ones kept on file are;-
- Checks on the electoral roll
- Aliases –These are any details lenders have supplied about other names you have used with this address.
- Financial Associations – Details of people who you are financially connected to by way of – joint accounts, joint applications, joint County Court Judgments.
- Records of County Court Judgments / Individual Voluntary Arrangements IVA’s or bankruptcies which normally stay on your file for 6 years
- Details of credit agreements with lenders – these will stay on your file for 6 years from settlement.
- Council of Mortgage Lenders records- detailing any repossessions or instances where you have given up your home.
- Linked or previous addresses where you have been known to reside.
- "Gone away" Information – any information about cases where you may have owed money but have left the address you were registered at when you took the finance out.
How do they affect your ability to borrow?
All creditors will check your file when they are considering giving you credit. The information they receive together with details about your ;-
- Income
- Employment status
- Banking details
- Mortgage or rent history
will be given points depending on how well you have conducted your affairs in the past. You are then given a "score" and the lender will use this to decide if you are an acceptable risk.
How can you obtain a copy of your credit file?
There are three main credit reference companies :-
Equifax plc
Equifax plc
PO Box 1140
Bradford
BD1 5US
Tel. 08705 143700
www.equifax.co.uk
|
Experian Ltd.
Consumer Help Service
PO Box 8000
Nottingham
NG1 5GX
Tel. 0870 241 6212
www.experian.co.uk |
Callcredit PLC
Consumer Services Dept
Park Row House
Leeds
LS1 5JF
Tel. 0113 244 1555
www.callcredit.plc.uk |
The easiest and quickest way is to go online and obtain it which might cost you up to £15.
The cheapest way is to write to them giving you name, current address along with any others you have had in the last 6 years, date of birth and enclosing a cheque for £2 payable to any of the 3 credit reference agencies. You then should receive a copy of your file within seven working days.
What can you do if it contains wrong information?
Details of how to correct any mistakes on your Credit File will be sent with a copy of your file. Further help can be obtained by obtaining a copy of the leaflet "No Credit?" - how to consult your credit record and correct any mistakes from The Office of the Data Protection Commissioner You can order copies of it by phoning 0870 44 21 211.
Can I repair my Credit File?
You may see some adverts for companies which suggest they can repair your credit file and have County Court Judgments or any other records removed. This is incorrect.
You cannot remove records as all records will remain on your file for 6 years from when they were first registered.
Having said this there are some legitimate ways of improving your credit rating and increase the possibility of creditors lending to you. These include;-
- Inserting a statement of up to 200 words onto your credit file to explain previous and/or current circumstances. When creditors search your file they will see this statement and may take this into account but it cannot be guaranteed.
- Don't keep making applications for credit as part of “shopping around” as such checks may make it look as though you are taking out a lot of credit which would increase the chances that you may be tuned down for any new finance you may want to eventually take.
- Make sure anyone who is financial linked to you pays their creditors on time, as lenders will look at this information when considering giving you credit.
What else can you do if you have major debt problems?
If you already started to gain an impaired credit record and are experiencing difficulties in maintaining existing personal loans or credit cards then call us for
free debt advice on 0800 970 4882
