Credit Rating

Do you have an automatic right to credit?

No. Nobody does. With thousands of individuals applying for credit every day for loans, mortgages, credit cards, mobile phones etc., lenders will do a credit search on you to establish whether you have the means and ability to repay the loan. To do this they use a credit reference agency, usually Experian or Equifax. They will also consider the information you supply on your application form.

How do these credit reference agencies help lenders decide if you are an acceptable risk?

Their decision is based upon the information held on the Electoral Roll (to confirm identity), records of County Court Judgements (CCJ's), Bankruptcies and payment records on current and previous credit accounts that are held by the Credit Reference Agencies.

What can you do if you are refused?

The lender is under no obligation to give you reasons why, however, for loan applications of up to £15,000, individuals have the right to know which agency supplied the information on which the decision may have been based, provided you request this information within 28 days of the initial application.

How do you get to see your file?

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