Credit rating explained
No-one has an automatic right to credit.
Individual lenders use their own criteria when deciding whether or not to lend you money, but they rely heavily on data supplied by credit reference agencies.
BBC News explains how they work, the information they hold, and how you can check and challenge your credit file.
What is a credit reference agency?
Credit reference agencies are commercial companies which compile information from a number of different sources, including the electoral roll, county court judgements and financial institutions.
They sell this information to lenders and other service providers in the form of credit reports which help them to decide whether to grant an application for a loan, credit card, or provide another financial product.
The three credit reference agencies operating in the UK are Experian, Equifax and Call Credit.
What information do they have?
Agencies hold personal information taken from previous credit applications. This includes your name, date of birth, current and recent addresses.
DATA HELD BY THE AGENCIES
Name and date of birth
The electoral register
Credit payment history
County Court judgements
Bankruptcy and administration orders
House repossessions
The main part of your credit report is your credit history. This lists your credit accounts, the date they were opened, the credit limit or loan amount, and whether you have missed any payments.