Credit check UK - personal history loan advice

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You will undergo what is known as a credit check, whenever you apply for a credit card, loan, mortgage, or any other form of credit in the UK. This check is carried out by one of the UK's three credit reference agencies. The agency examines the personal history that they hold on your credit file and then reports these details back to the lender. This data is then used to establish whether or not you meet the necessary requirements, and ultimately whether or not your application is going to be approved.

The credit reference agencies hold details of virtually every adult in this country, and in line with the Data Protection Act 1998, you have the right to view this information if requested for a fee.

The information that they hold can in some cases be very extensive, but most people's files will contain the following areas of data:

Public record information

To begin with this involves checking the individual's name and address against the electoral role, but also includes details of any county court judgments, bankruptcies and repossessions. In Scotland, Scottish decrees are checked; these are given to individuals who have a history of defaulting on debt.

Credit account information

Within the UK, lenders agree to share information about their customers with other lenders by registering their details with the reference agencies. Any adverse history, for example, overdue repayments or unauthorised overdrafts will be recorded and this data will negatively affect any future applications that you make. Details of existing credit like store and credit cards is also recorded so that the loan companies can check what customers' current financial obligations are. Even if you always keep up your repayments, having excessive repayment commitments may result in an application being turned down.

Search Information

These details record any searches that credit companies have recently carried out on the individual. If the file shows that a large number of checks have been processed, it shows that the applicant has applied for a lot of loans or credit cards or other forms of credit. This information can greatly affect a person's credit scoring, as it can suggest they are over-committed financially, or can even be an indication of fraudulent activity.

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