A credit report contains all the information held on an indvidual at their address(es) by the Credit Reference Agency. Lenders use the information it contains to decide whether to give you credit.
If you’re over 18 and have ever taken out a loan, credit card or mobile phone contract, a credit reference agency like TransUnion likely holds a copy of your credit report. It’s important to monitor your financial activity, so checking your report regularly is a good idea.
Think of your credit report as a kind of financial passport that includes your financial history and credit activity.
Your credit report will provide the following information:
People with a good credit history are more likely to be given credit and offered higher credit limits and lower interest rates. A bad credit history may lead to your application being declined.
Rest assured, your credit report will never contain sensitive personal information, such as race, religion, sexuality, political beliefs or medical history.
That’s why it’s important to regularly check your credit report activity and ensure all the information on your report is accurate.
Lenders can also use your credit report to help decide what your credit limit should be, which they may review on a regular basis. For example, if there are signs that you are experiencing financial difficulties the lender may consider reducing your credit limit.