What is a credit report?
Key takeaways
Your credit report is a record of your credit accounts, such as credit cards and personal loans, repayment history and other information used by lenders to assess your creditworthiness
Your credit report can influence lenders’ decisions when you apply for credit, so it’s worth checking it regularly
If you spot an error on your credit report, contact the lender or credit reference agency to get it corrected
What is a credit report?
A credit report, sometimes called a credit file, is a record of how you've used credit in the past and your financial history.
The information in your credit report helps calculate your credit score, which can change over time as your financial circumstances and credit activity change.
Lenders use your credit score to help decide whether to accept your applications for mortgages, loans and credit cards.
Your credit file and credit score will also determine the interest rate that lenders offer you and what sort of credit limit you qualify for.
The UK has three main credit reference agencies – Experian, Equifax and TransUnion.
Each may hold slightly different information and uses its own scoring system, so your credit score can vary between them. MoneySuperMarket’s Credit Score service uses information from TransUnion.
What is a statutory credit report?
A statutory credit report is the basic credit report that Experian, Equifax and TransUnion must provide for free on request.
A statutory report provides a basic view of your credit history, while other credit report services may offer additional features, such as regular updates, alerts and guidance on improving your credit profile.
Why is a credit report important?
Your credit report is important because it helps determine lenders’ willingness to approve your borrowing requests including the terms that they offer.
They use the information it provides, alongside your income and other details, to assess your application and decide what terms to offer.
It can affect your chances of getting a mortgage, loan or credit card, as well as the interest rates and terms you’re offered.
These directly influence how much you pay to borrow, including the total interest charged and your monthly repayments.
What information is in a credit report?
Your credit report will include personal details, such as your name, current address and previous addresses, and whether you’re registered to vote on the electoral roll.
It will also include details of lenders you’ve borrowed from in the last six years, as well as any late or missed payments.
Credit rating agencies (CRAs), such as TransUnion, Equifax and Experian, keep information from the courts too.
This may include any County Court Judgements (CCJ) in your name, Individual Voluntary Arrangements (IVA), or bankruptcy.
It’s worth noting as well, that your credit report will also show details of people with whom you’ve been associated financially in the past. That might be via a joint mortgage or joint bank account.
What factors determine my credit score?
Factors that influence your credit score include:
Repayment record
Repaying debts and bills on time is important. Missed or late payments and CCJs can negatively affect your credit history.
Registering to vote
Being on the electoral roll helps lenders verify your identity and can support your credit applications.
Credit history length
A longer credit history can help lenders assess how you’ve managed credit over time.
Amount owed
Your level of debt can affect your score, particularly how much of your available credit you’re using.
Credit utilisation and existing accounts
Using a high proportion of your available credit can affect your score. Closing accounts may reduce your available credit and increase your credit utilisation.
High volume of credit applications
Several credit applications in a short period can temporarily affect your score. Formal applications often trigger hard credit checks, which can appear on your credit file.
How do lenders use the information on my credit report?
Lenders use the information on your credit report to help decide whether to lend to you.
They’ll also consider other factors, such as your income, outgoings and affordability, when assessing your application.
If a lender declines your application, you can ask for an explanation. They should also tell you which credit reference agency they used if you ask.
How do I access my credit report?
You can see your credit score for free with MoneySuperMarket’s Credit Score service.
All you need to do is tell us a few details about yourself and we’ll track down your personal credit score.
Better still, we’ll also provide suggestions to improve your rating. And we can show you credit card and loan offers tailored to your score too.
Alternatively, you can check your score directly with any of the UK’s credit reference agencies: Equifax, Experian and TransUnion.
How often should I check my credit report?
It’s always a good idea to regularly take stock of your financial situation. With that in mind, we’d recommend that you check your score at least annually.
You’re free to check your score as often as you like, though. And because it only entails a 'softsearch' you can rest assured that it won’t affect your rating.
So if you want to check in monthly to ensure you’re aware of any positive or negative changes to your score, you can.
What kind of mistake could appear on my credit report?
Mistakes on your credit report could include payments incorrectly marked as late or missed, debts that you’ve already paid off but still appear as outstanding, or credit accounts opened in your name that you don’t recognise. Your personal details, such as your address, could also be incorrect. Check that the accounts, balances and payment history listed are accurate and that there’s no sign of fraudulent activity.
What should I do if I spot errors on my credit report?
If you find a mistake on your file, take the following steps to correct it quickly…
Inform the lender
Let the lender know as soon as you can, making sure that you have evidence of the error, in the form of receipts or statements.
Some lenders will take immediate action and remove it. Others may require you to raise the matter through their official complaints channels.
The onus is on the lender to inform the credit agencies they employ. So you’ll only have to submit a single request.
Get in touch with the credit agency
If the lender says they don’t have a record of the mistake, take your complaint to the credit reference agency in question.
All three of the major credit rating agencies Experian, Equifax and TransUnion (the agency used by our Credit Score service), have online forms that allow you to submit a request to correct a mistake.
Submit a notice of correction
If neither of those avenues allow you to fix the mistake, raise a ‘notice of correction’ on your credit report.
This allows you to write a 200-word statement to explain the mistake (for example, you may have missed a payment due to ill health) and ask lenders to take it into account.
How long does it take to resolve a credit report dispute?
It depends on the nature of the error and who needs to investigate it. Credit reference agencies usually aim to resolve disputes within 28 days, but more complex cases can take longer. Contact the agency and the lender or provider involved, and keep records of your correspondence while the issue is investigated.
How long does it take to improve my credit score?
It's won’t happen overnight, but by displaying a consistently responsible attitude to credit and your finances, your score should improve over time.
That means meeting your repayments, ensuring you're registered on the electoral roll and being diligent about checking your credit report for mistakes.
Our guide on how to improve your credit rating offers more hints and tips.
Does my credit report show if I've been rejected for credit?
Your credit report won’t usually show whether a lender has rejected your application.
However, if you made a formal application, the hard credit check may appear on your report, regardless of the outcome.
Lenders can see these searches and may consider them when assessing future applications for credit.
Why don't all my accounts show on my credit report?
Not all lenders and service providers share information with every credit reference agency, so your reports from Experian, Equifax and TransUnion may differ. Some accounts, such as savings accounts, won’t normally appear because they don’t involve borrowing. New accounts can also take time to show up, as lenders update credit reference agencies periodically.
Personal Finance Expert
Our expert says...
Your credit score can play an important role in whether a lender approves your application and the interest rate or credit limit you’re offered. But it’s only one part of the picture – lenders also look at your income, outgoings and wider credit history. The good news is that checking your score is quick and easy, and you can do it for free. Regular checks help you understand your credit position and spot anything that needs attention.
Other useful guides
Nurture your credit score with Credit Score
With Credit Score, you can check your credit score and report for free as often as you like.
Track changes to your score and get alerts about suspicious activity on your file, helping you spot potential fraud early.
You’ll also receive regular updates, plus free tips and advice to help you improve your score over time.
Author
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
Reviewer
Alan Cairns
Senior Content Editor
Alan breaks down money, home, and energy topics into plain English to help you save money. Ask him about pound cost averaging or Balkonkraftwerk.
