What is my Credit Report?

Your credit report is created and maintained by a credit reference agency. It is used by lenders to assess any credit applications you have made with them.

What Information does my Report Hold?

It contains public information such as your address and details of your credit history.

Public information is usually taken from the electoral role that the credit reference agencies purchase. They store this information so that you can be identified through a credit search. It also helps to prevent fraud and assists the lender in assessing your credit application.

When you give a company permission to search your credit report for public or credit account information a "footprint" is left. This footprint remains there for up to two years to identify when people are trying to obtain credit they cannot afford or to possibly detect fraud.

A different footprint will be left for different searches. For example, if the purpose of the search is simply to confirm your identity then an "identity footprint" is entered onto the file.

How would I use my Credit Report?

Ordering your report from a credit reference agency will be particularly useful in a number of circumstances. These include:

• If you have debt problems
• If you have difficulties obtaining credit
• When breaking financial links after a separation or a divorce

Once you have your report you will be able to identify any errors and make the appropriate changes.

Why is it Important that I maintain my report?

Most of us only hear about credit reference agencies when we are turned down for credit.

Any mistakes that are detrimental to your credit file could cause the following problems:

• A loan application to be rejected
• A bank account application declined
• An application to rent a property declined
• Refusal for a mortgage
• Many others

These problems will also occur if you have a poor credit history or if a joint credit application is being made with somebody who has poor credit.

If you have debt problems there is likely to be a greater amount of credit information held on your file. Therefore, if you are making a plan to resolve these debt problems you should order your credit file and ensure it is accurate.

This will help you and any debt advice organisation assess your financial position and prepare a plan to resolve your predicament.

If you require a loan as part of your debt solution, an inaccurate credit report can hold up the application worsening your situation.

Association with other people

Contrary to many beliefs, lenders can only take account of information about other people at your address if they also have a financial link to you.

When two people open a joint account, apply for credit together or tell the credit reference agency they a financial link an association is created. This association remains on the credit file until the agency is informed the ties no longer exist and it can be proved. Associations will show up on your credit file.