Before you begin reading this article here is a range of useful definitions. Equifax is one of the major UK credit reference agencies. Equifax compiles all your financial information from different sources to create a report that reveals your personal financial history - i.e. your credit file. When you apply for any credit, lenders will check you report to understand your credit history. You may apply for a duplicate of your credit file at any point in order to confirm that everything is right. The Equifax online site has a lot of valuable instructions on sensible financial decisions and protecting yourself from fraudulent practices.
Experian is one of the major UK credit reference agencies. Lenders will turn to credit referencing agencies to find out about the suitability of a customer founded on their financial history. This is referred to as a credit file. As with every consumer, you can apply for a copy of your report from Experian in order to confirm that all the statistics on it are correct and that your personal information have not been used in some fraudulent way.
A credit check is a form of research executed by a would-be loan company to determine how eligible you are for a loan. Loan companies will study your credit report to see your existing and past financial responsibilities. Loan companies can then attach to you a a credit score to see whether the manner in which you run your money matters satisfies their requisites for credit.
A credit report is basically financial data about you held by a credit reference agency (such as Experian, Equifax or CallCredit plc). The data is used by potential lenders, landlords and employers to help them make a decision as to whether approve your application for a loan or other credit; or for a job or as a tenant.
The information on your credit file is updated on an ongoing basis, and is provided by companies who have given you credit in the past and currently. The data on your file includes:
1. Personal information such as your name and any previous names you have been known by, date of birth, current and recent addresses, current and previous employers.
2. Your financial credit history. This details current and previous credit from the last six years, including amounts currently owed; details of credit accounts that were opened in your name (or ones where you are an authorised user); whether payments have been kept up to date or missed; any bankruptcies, County Court Judgements (CCJs) or arrears etc
Information about your current or savings accounts, or bankruptcies, CCJs that are more than 6 years old are not shown on your credit file, nor your political affiliation, medical history, ethnicity, religion, nor criminal records.
Provided they have your consent, your report can be viewed by anyone with an acceptable purpose. These include: potential lenders; landlords; any Government Agency; employers and potential employers and an individual or organisation that has your written authorisation to obtain your credit report
