What is a credit reference agency? Experian CreditExpert #free #credit #report #without #credit #card

#credit reference agencies uk

What is a credit reference agency?

A credit reference agency is an independent organisation that holds information about consumers or businesses (or both), to help banks and financial institutions decide whether to give them credit. In the UK, when a consumer applies for credit they give the lender information about themselves and their finances.

The lender will also get more detailed information from a credit reference agency. They can do this because lenders have all agreed to share information about their customers through the credit reference agencies. They each supply this information to the credit reference agencies to hold on their behalf. The credit reference agencies then act as independent go-betweens and work with the lenders to make sure the information is kept accurate and up to date.

What is Experian?

Experian is one of three credit reference agencies in the UK. We have two main purposes:

1. To help banks and financial institutions make fair and responsible lending decisions, while treating their customers fairly, as individuals.

2. To help consumers, banks and financial institutions, guard against fraud.

As the UK’s largest credit reference agency, we provide factual information to a wide range of businesses, including banks, building societies, finance houses, mobile phone companies and major retailers. This information helps them verify the identity of customers, prevent fraud, and decide whether or not the person applying for credit can afford it and is likely to repay them.

What credit reference agencies are there in the UK?

There are 3 main credit reference agencies in the UK; Experian, Equifax and CallCredit. CallCredit own Noddle, who you may have also heard of. You can sign up to receive your credit report from all three of these credit reference agencies.

What s the difference between Experian, Equifax and CallCredit?

If you have been a victim of fraud, or you are applying for a high value credit product such as a mortgage, we would recommend checking your credit report with more than one of the credit reference agencies. This is because each one can hold slightly different information, so for your own peace of mind this may be worth doing.

Why do credit reference agencies exist?

All banks and financial institutions within the UK use one of these three credit reference agencies to decide whether to offer you credit or not. (Take a look at this handy, independent guide from the ICO for more information).

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