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The kind of information a lender will need to decide whether or not you are a good credit risk, will include the following:
Your age
Your occupation
Your income
Where you live (whether or not you own your home and how long you have been there)
Current debt obligations
Marital status
A lender will also consider the information on file about you at a credit reference agency (more about these below). The details an agency will have on file includes:
Electoral Roll information from your local Council - this is updated every month
A record of all previous "searches" (known as "footprints") of your file which have been carried out over the preceding 12 to 24 months. Many attempts to obtain credit simply adds to the number of entries (footprints) on your record, adversely affecting your rating still further.
Existing and past customer credit agreements from lenders which are updated monthly (so late payments of credit cards, for instance, are recorded).
County Court Judgements (CCJs) and Scottish Decrees, Individual Voluntary Arrangements (IVAs), Bankruptcies and Administration Orders.
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What the law says
· The Consumer Credit Act 1974 gives you the right to have incorrect information corrected or removed from your file or have a note put on the file, which explains why you think the information is wrong.
· Under this Act the credit reference agency has to tell you within 28 days of receiving your letter if they have taken action to correct your file or why they have not done so.
· Under the Data Protection Act 1998 you should be told, unless it is already obvious, if the files of a credit reference agency are to be searched when you apply for credit.
· The Theft Act 1968 makes it an offence to supply incorrect information on an application for credit
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