When you apply for a creditcard, mobile phone contract, overdraft or mortgage,lenders may look at your credit history, including how much credit you've been given and howyou've managed your repayments. Based on this and other information asked in yourapplication they will then decide whether you are likely to repay the credit they give you.
What data appears on your credit report?
- Address details e.g. electoralroll information for your current address, plus any previous addresses.
- Financial credit agreements e.g. loans, credit cards, mortgages and overdrafts. Thisincludes anymissed or late payments.
- Public records e.g. countycourt judgments (CCJs), bankruptciesor insolvencies.
- Financialassociates. If you have a financial associate – for example, someoneyou’ve taken out a joint mortgage with – lenders could take their financialbehaviour into account when you apply for new credit
What data doesn’t appear on your report?
Data not recorded on your credit report includes your employment history, savings accounts,criminal records, medical records, ethnicity, religion or political affiliation.
How do lenders and other organisations use your credit report?
Lenders use the information on your credit report to help them assess your financialbehaviour. Using their own unique criteria, they will review this data along with otherinformation you may provide such as your job and salary, and then decide if you’re agood candidate for credit. Typically they’re looking to assess whether you’relikely to repay what they lend you.
It’s worth noting that lenders can only look at your credit report if they have alegitimate business reason.
Organisations may also access certain aspects of your credit report to confirm your identityto help preventfraud.
Keeping your data accurate
Any data on your credit report is subject to the Data Protection Act, which means we have anobligation to ensure the information is accurate and up to date – something we take veryseriously.
What can you do if your credit report is not accurate?
If you find any inaccurate information on your Equifax Credit Report, you have the right tochallenge it. Find out how here.
This article was updated in July 2021; all information was correct at thetime of writing.
Related Articles
