How Credit Referencing Works
Introduction
Basically, a lender wants to make sure that you are likely to repay a loan, honour a credit card or other credit agreement or pay for goods bought or rented on credit.
To help them decide, most lenders have other information, usually supplied by you on an application form - for example details of your occupation and wages - which is not held by credit reference agency. It helps lenders check your name and address or shows whether or not you have any County Court Judgments or are bankrupt and shows how you are managing your credit agreements.
If you are up-to-date with payments, this is likely to help you to get more credit. If you are behind with payments, a new lender may want to look more closely at your application. Adverse information, such as a County Court Judgment, a bankruptcy or a defaulted account, stays on the record for six years. So it is sensible to make sure that you understand the information held and that it is as up-to-date as possible.
