Understanding Your Credit Report

If you have been known by names other than your current one –  an entry will be made under the ‘alias’ section of the file.

This ensures that your financial history remains complete and in a single record.

This means people you’ve a financial connection with; for example your partner should you have a joint bank account or mortgage.

Just living at the same address does not imply a financial association even in the case of family member with the same surname.

Details of current and previous addresses that you have been a resident of when applying for credit; or known to your bank; or other financial account holder – presuming you’ve told them – is recorded.

Why? – you may have moved home since opening an account and this helps all creditors locate you should you fail to inform them accordingly.

Details of where you have lived and how long for are listed on file.

It will also state whether you are on the electoral roll. It is advisable to register to vote if you are not registered at your current address.

Why? – because in general and to some extent – the stability of residence correlates to the stability of other aspects of life such as financial stability.

Any active credit bearing accounts, balance and a history of made and missed payments is included.

It is up to the account provider to keep this current and these tend to be updated each month.  In some cases you may not see details of any payment or balance updates for up to 3 months.

Mobile phone contracts are included showing the outstanding credit element of the plan.

Closed accounts may be included for six years after the date of closure.

Default notices, if registered, are marked against the corresponding account and may be listed for six years from the date issued.

Details of any County Court Judgments, High Court Judgments, Decrees or Administration Orders may appear against the relevant account entry for six years from the date they were granted.

When a credit reference file is used by a potential lender, individual or institution there is an entry made under search information. When applying for credit, you will usually be asked to acknowledge that a search will be made so you are aware that a record of the search will be created.

How long this information is held depends on the credit reference agency.

There are two kinds of search that can occur on your credit report: hard and soft searches. While both types enable a third party, such as you or a lender to view your credit report, only a hard search can negatively affect your credit score.

• Hard searches generally occur when a financial institution checks your credit report when making a lending decision.
• Soft searches typically occur when a person or company checks your credit report as part of a background check. This can be used getting a loan quote or insurance quote.

If a number of hard searches are made this may have a bad affect on your credit score as it can appear as though you are desperate to obtain credit and therefore pose a higher risk to lenders.

The CML maintains a register of anyone who has had to give up their interest in a property, or been subject to repossession.  This is a useful guide to any future mortgage lenders to assess risk.

This may stay on your credit file for six years but can only be viewed by members of the Council of Mortgage Lenders.

If a borrower fails to maintain payments and subsequently moves address without informing the creditor, they may find that there is an entry made under GAIN.

GAIN is a trade organisation that shares details of customers who have statements and other correspondence returned undelivered by the Post Office, marked ‘gone away’.

This information may last for six years but is only accessible by participants of GAIN.

An entry may be made under CIFAS if a lender believes there may be a fraud or an attempted fraud to warn other lenders and protect customers.  Only members of CIFAS see this information.