Credit file reporting
Your credit file (also known as credit history or credit record) is put together by credit reference agencies from information shared by lenders and other relevant public information. The credit references agencies use this information to calculate your credit score.
The three main agencies in the UK are:
Lenders use the information on your credit file to:
- Carry out identity checks to make sure you are who you say you are
- Check you live at the address you’ve given them
- Decide whether to lend you money and what interest rate to charge you
There is no industry standard for credit scores, so each agency uses slightly different information to calculate theirs. The higher your credit score, the better your chances of getting approved for credit.
The following information is included in your credit file:
- Your name, date of birth and any other names you previously used.
- The amount you owe on your credit agreements. For example, loans, mortgages, credit cards and overdrafts.
- Your payment history on your credit agreements.
- Any defaulted credit agreements.
- Any County Court judgments (CCJs), decrees and money judgements raised against you.
- Details of any repossessions, including voluntary repossessions.
- Details of current or recent insolvency – including bankruptcy, individual voluntary arrangements (IVA) and debt relief orders (DRO).
Every month we tell the credit reference agencies about how you’re managing your mortgage. We’ll tell them:
- How much you owe.
- When you took out your mortgage and how long this was for (in months).
- Whether your payments are up to date. If your account is in payment shortfall, we’ll tell them how many months behind you are with your payments – up to a maximum of six.
- Whether you have a payment arrangement to pay back any payment shortfall.
- If we repossess your property or you voluntarily surrender it (sometimes called ‘handing back the keys’) to us, we’ll tell the credit reference agencies about this.
- If we’ve taken legal action on your buy-to-let mortgage, such as the appointment of a fixed charge Receiver, we’ll tell them about this.
Information about your payment history, defaults or court judgments will stay on your credit file for six years. These details are always removed from your credit file after six years, even if the debt itself is still unpaid.
Details of the following stay on your credit file for six years from the date they were recorded:
- Any defaulted credit agreements.
- Debts you’ve paid off or ‘settled’ in full.
- ‘Partial settlements’ where a creditor has agreed to accept a reduced amount and write off the remainder of a debt.
- Any form of insolvency – bankruptcy, IVA, protected trust deed or Debt Relief Order (DRO).
Taking the first step in talking to us or a debt advisor won’t impact your credit file. A conversation with us or a debt advisor is confidential.
If we agree a payment arrangement with you or offer other support with your mortgage, we’ll tell you how this will affect your credit file. If you go ahead with a debt solution where you stop paying or pay less to your debts, this will be recorded on your credit file.
If you’re struggling with your mortgage payments, please call us on 03330 148 048 to talk about the ways we can help. Don’t let worrying about your credit file stop you from getting the support you need. Phone lines are open between 9am and 5pm Monday to Friday, excluding bank holidays. Or find details of the debt advice organisations we work closely with on our Independent Support section.
Each credit reference agency works out their credit score differently, but the following factors are likely to have an impact:
- Missed or late payments.
- Defaulted credit agreements or CCJs.
- Lots of credit applications, for example for loans or credit cards, in a short space of time.
- Going close to or over the credit limit on your credit cards.
- Frequent cash withdrawals using your credit card.
- Not being on the electoral register.
- Having joint accounts with someone with a bad credit record.
You should make sure that your personal details with each of the agencies are correct as even small errors can affect your rating. If you find a mistake, you should ask all the agencies to correct it.
Make sure you’re not still part of any joint accounts or financial commitments from past relationships, like with an ex-partner or flatmate. For example, utility bills or joint bank accounts. If you’ve not got anything outstanding, you can ask the agency for a ‘notice of disassociation’ to remove a financial link between you and another person. You can find more information about the process on each of the agencies’ websites. You should contact all three of them.
You have the right to know what information the credit reference agencies hold about you. You can obtain a basic report from each of the agencies for free, although they don’t include your credit score and may take a while to come. You can view your credit reports for free at the following links:
Many of the agencies also offer a free 30-day trial, after which you’ll have to pay a monthly subscription. So, if you don’t want to be charged, make sure you remember to cancel before the 30-day trial ends.
It may also be possible to view your credit report for free using some banking and credit card mobile phone applications.