When you apply for a loan, credit card, or mortgage, lenders check your credit report to decide if they'll lend you money.
Your credit report tells them about your money habits and helps them work out if you're likely to pay them back.
Your credit report is like a money diary that shows how you handle borrowing and paying back money. The UK’s three credit reference agencies Equifax, Experian and TransUnion keep this information about you. They share it with banks, building societies, and other lenders when you apply for credit.
Below are eight key areas which lenders check when viewing your credit report.
Lenders can see your basic information:
Being on the electoral roll helps prove you live where you say you do and can demonstrate stability to lenders.
Your credit history shows how you've handled money in the past. Lenders look at:
Every time you apply for credit, it leaves a mark on your credit report called a credit search or credit check. There are two types:
Lenders can see if you have financial links to other people. This happens when you:
The other person's credit history can affect your credit applications. If they have bad credit, it might make it harder for you to get approved.
Defaults happen when you stop paying a debt for several months. The lender marks your account as defaulted. This also stays on your credit file for six years.
CCJs happen when you don't pay money you owe and the court orders you to pay it. These stay on your credit report for six years and make it much harder to get credit.
You can check the status of a these directly with the credit reference agencies. Settling the debt can look better to lenders, even if the mark still remains.
If you’ve had an IVA (individual voluntary arrangement) or been declared bankrupt, this will also be visible.
Credit reference agencies give you a credit score based on your credit report. Each agency uses different scoring systems:
Lenders will also create their own score of you based on their criteria and the information they view on your credit report. A higher credit score means you're more likely to get approved for credit at better interest rates.
If you’ve been the victim of credit fraud and it’s been reported to the UK's Fraud Database, CIFAS, this should show on your report for lenders to see.
It’s important you keep a close eye on your report. If you see anything that doesn’t appear to be correct, make sure you raise the concern with the credit reference agency in question.
Credit utilisation is how much of your available credit you're using. If you have a £1,000 credit limit and owe £300, your credit utilisation is 30%. Lenders prefer to see low credit utilisation - ideally under 30% of your total credit limits.
Different information stays on your credit report for different lengths of time:
There are instances where a Bankruptcy Restriction Order (BRO) or a Bankruptcy Restriction Undertaking (BRU) can stay on your report for up to 15 years. An IVA can also remain on your report for 15 years if it does not meet the IVA criteria.
When lenders check your credit report, they want to see:
They worry about:
It's just as important to know what lenders can't see on your credit report. This information stays private:
Your bank balance and savings - Lenders can't see how much money you have in your bank accounts or savings accounts. They only see your credit accounts like loans and credit cards.
Information older than six years - Most negative information like missed payments, defaults, and CCJs disappear from your credit report after six years. Lenders can't see these old problems.
Your medical records - Health information is completely private. Lenders never see details about your medical history or any health conditions you might have.
Your salary details - While lenders ask about your income when you apply, they can't see your exact salary or employment details on your credit report.
Your spending habits - Lenders can't see what you buy or where you spend your money. They only see if you make your credit payments on time.
Your race, religion, or politics - Personal information about your background, beliefs, or political views never appears on credit reports.
Student loan payments - In the UK, student loan repayments don't appear on your credit report, so they don't affect your credit score.
Rent payments - Most rent payments don't show up on credit reports, though some services now help tenants add rental history to build credit.
This means lenders judge you mainly on how you've handled credit in the past six years, not on your personal circumstances or how much money you currently have.
You can check your credit report for free with all three credit reference agencies. You should check it regularly to:
Your credit report is one of the most important financial documents about you. Understanding what lenders see helps you make better money decisions and improve your chances of getting approved for credit when you need it.
Remember, building good credit takes time, but the effort pays off when you get better interest rates and easier approval for loans, mortgages, and credit cards.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Zubin is a personal finance writer with an extensive background in the finance sector, working across management and operational roles. He applies his experience in customer communication to his writing, with the aim of simplifying content to help people better understand their finances.
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