Lenders use your credit report, which is a comprehensive overview of your financial history, as a financial report card to determine your creditworthiness. It’s critical to comprehend what UK lenders view on your credit report in order to manage your money and increase your chances of being approved for loans, mortgages, and other credit.
Key Information Lenders See on Your Credit Report:
- Personal Details: This includes your full name, date of birth, and current address, along with any previous addresses registered on the electoral roll.
- Credit Accounts: Lenders can see details of all your current and past credit accounts, including loans, credit cards, mortgages, and overdrafts. This information includes the credit limit or loan amount, outstanding balance, and payment history.
- Financial Behavior: Lenders pay close attention to your payment history, noting any missed or late payments and the frequency of such occurrences. This provides insight into your financial responsibility and ability to manage debt.
- Credit Checks: Your credit report displays a record of all hard credit checks conducted by lenders when you apply for credit. This helps them understand your recent credit-seeking behavior and assess your potential risk.
- Financial Associations: Lenders can see any financial connections you have with other individuals, such as joint accounts or mortgages. This information can influence their decision if the associated individual has a poor credit history.
- Public Records: Your credit report reflects any public records related to your financial situation, including County Court Judgments (CCJs), bankruptcies, or Individual Voluntary Arrangements (IVAs). These records provide lenders with a broader picture of your financial health.
- Fraud History: If you’ve been a victim of fraud, a notification will appear on your credit report through the UK’s Fraud Prevention Service CIFAS register. This helps lenders identify potential risks associated with your identity.
What Lenders Don’t See on Your Credit Report:
- Salary and Savings: Lenders cannot access information about your income, savings, or investments.
- Criminal Record: Your criminal record is not reflected on your credit report.
- Medical History: Lenders do not have access to your medical history.
- Student Loans: Student loans are not typically included in your credit report.
- Council Tax Arrears: Information about council tax arrears is not usually displayed on your credit report.
Understanding Your Credit Report:
Accessing and reviewing your credit report regularly is essential for ensuring its accuracy and identifying any potential errors. You can obtain your free statutory credit report from each of the three credit reference agencies (Experian, Equifax and TransUnion) by visiting their websites or requesting a paper copy.
Improving Your Credit Report:
Keeping your credit history clean is essential to getting good loan terms and interest rates. You can improve your credit report by:
- Making timely payments on all your bills and credit accounts.
- Keeping your credit utilization ratio low (ideally below 30%).
- Checking your credit report regularly for errors and disputing any inaccuracies.
- Avoiding applying for multiple credit accounts within a short period.
You can raise your credit score and get better credit options by being aware of what lenders see on your credit report and taking action to improve it.
Also in this section
Get a better idea of how lenders may view you.
Sign up for your free Experian Credit Score.
What information do lenders see on your credit report?
Your credit report includes things like:
- Your full name and date of birth
- Your electoral roll information (i. e. whether youâre registered to vote at your current address).
- A list of all the credit accounts you currently have and have closed or settled in the previous six years This data includes the amount owed on each account, including mortgages, as well as the credit limit or loan amount.
- Any current account overdrafts you may have
- Information regarding your financial habits, including the frequency of late or missed payments, as well as how long you have done so
- Information about any hard credit inquiries that lenders have made, e g. because of your credit application, as well as the dates of those checks Soft credit checks are also a part of it, but only you can view these.
- Financial relationships and affiliations with other individuals, such as having a mortgage or joint bank account
- Any public records that are kept against your name, including bankruptcies, Individual Voluntary Arrangements (IVAs), and County Court Judgments (CCJs) from the previous six years
- Information about whether you have ever fallen victim to fraud via a Cifas notification
In case you were wondering, your credit report does not contain information about your income, savings, criminal history, health, education loans, or past-due council taxes.
Additionally, you can purchase a CreditExpert subscription, which grants you access to your Experian credit report indefinitely, credit report alerts, customized advice on how to raise your score, and other benefits. It starts with a 30-day trial if youâre a new customer.
Creating a free Experian account will let you check your Experian Credit Score without paying a penny. Based on data from your credit report, your score indicates your likelihood of being granted credit; the higher it is, the better your chances.
What Do Lenders See When They Check My Credit? | Experian Credit 101 Express
FAQ
What credit report do lenders check?
What does your credit report tell a lender about you?
How far back do lenders look at credit history?
Can lenders see defaults after 6 years?
What can lenders see?
Lenders will be able to see details of all your credit accounts. This includes any mortgages, credit cards, overdrafts and personal loans you might have along with utility company bills.
What can a lender see on my credit record?
Lenders will be able to see details of all your credit accounts. This includes any mortgages, credit cards, overdrafts and personal loans you might have along with utility company bills. Your credit record also shows your repayment history for all your credit accounts and will show any missed or late credit repayments over the last 6 years.
What do companies look at on your credit report?
Companies that may look at some of the data on your report include: For example, if you apply for a new bank account, the bank will check information on your credit report to confirm your identity. They may also want to see your financial behaviour to assess the risk of having you as a customer.
What does a lender look for in a credit report?
Lenders will use your credit report to assess the level of risk they’re taking on when they lend to you. They’ll look at things such as if you’ve paid back your debts in the past, how you’ve paid it back (e.g. on time or late) and how much debt you currently have.