Before you start reading this article here is a number of helpful definitions. Equifax is one of the important UK credit reference agencies. Equifax draws together all your credit facts and figures from different sources to form a report that indicates your credit history - i.e. your credit file. In the event you apply for credit, lenders will check out your credit file to get a picture of your credit history. It's possible to request a copy of your credit file at any point so as to know that everything is the way it should be. The Equifax online website has lots of useful suggestions on making sensible credit decisions and safeguarding yourself from fraudulent schemes.
Experian is one of a number of key UK credit reference agencies. Lenders will go to a credit reference agency to determine the appropriateness of a customer derived from their financial past. This is referred to as a credit file. As with all consumers, you might obtain a copy of your credit report from Experian to see that all the information on it is right and that your personal information haven't been used for some scam.
A credit check is an investigation carried out by a would-be lender to evaluate how suitable you are for a loan. Loan companies will check out your credit file to know your existing and past financial obligations. Loan providers can then assign you a credit rating to identify if the fashion in which you manage your finances meets their requisites for being granted 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
Author : James Miller
