Before a lender decides whether to give you credit, they’ll look at a range of information in your credit file. The most obvious is any credit you’ve had or have in your name during the last six years. This includes credit cards, loans, mortgages, current bank accounts and utility and mobile phone contracts. Other criteria they’ll look at includes the length of your credit history and how many times you’ve applied for credit within short time periods. Plus, information that’s publicly available will also be considered, for example County Court Judgments (CCJs) and the electoral register.
We have to report your financial activity to credit reference agencies once a month and this information can stay on your file for up to six years. So, if you miss or make a reduced payment, this will be reflected in your credit history. Any default information – for example if you become bankrupt, insolvent or you’re on a repayment plan – will also be recorded.
What your credit rating might be checked for
Think your credit rating’s only checked for things like mortgage and credit card applications? Think again. Lenders check credit reference agencies for:
Mortgages and re-mortgages
Potential employers may also check your credit rating before offering you a job