Credit reference agencies (CRAs) are companies that collect and maintain information about an individual’s credit history. This information is used to produce credit reports, which are used by lenders and other organisations to assess an individual’s creditworthiness.
CRAs collect information from a range of sources, including:
- Financial institutions: Banks, building societies, and credit card companies provide information about an individual’s credit accounts and repayment history.
- Public records: CRAs may also collect information from public records, such as county court judgments and bankruptcies.
- Credit applications: When an individual applies for credit, the lender may pass on information about the application to a CRA.
CRAs use this information to create a credit report, which is a detailed record of an individual’s credit history. The report includes information about the individual’s credit accounts, such as the type of account, the credit limit, and the current balance. It also includes information about the individual’s repayment history, including whether they have made payments on time and whether they have missed any payments.
Lenders and other organisations use credit reports to assess an individual’s creditworthiness and to decide whether to approve a credit application.
In the UK the three main CRAs are:
- Experian
- Equifax
- TransUnion
You can ask these agencies for a copy of your credit report so you can see what information they hold about you.
