Credit Reference Agencies
There are two companies that supply credit reference requests:
Experian Consumer Help Service PO Box 8000 Nottingham NG1 5GXEquifax PLC PO Box 1140 Bradford BD1 5US
Write to the above companies including your existing and all previous addresses over the last six years (include postcodes, which can be obtained at http://www.royalmail.com ). Together with a cheque/postal order for £2.00. You should hear from them within 14 days with a detailed report of your credit history.
Be careful of credit repair companies claiming they can remove County Court Judgements. In our expeirience the removal of County Court Judgements is not possible.
How creditors decide whether or not to give credit
Lenders use a number of methods to decide whether or not to give credit. If you are told you cannot have credit you can apply again either with the same company or another one. You have no right to be granted credit or to be given a reason why credit has not been granted, although some creditors may give this information.
Credit scoring
This is a method used by most lenders to profile their applicants. You score points ( or lose points depending on the system) for certain criteria. Some are basic, some are very sophisticated. Things like having a phone, having credit cards, length of residence at the same address are all examples of credit scoring criteria. The lender is obliged to tell you if they use a system but not details of the system or why you may have failed it. This is because if you knew the criteria it would be tempting to alter your application to suit wouldn't it?
Credit reference agency
A credit reference agency builds up information on an applicant's financial position from the electoral roll, county court judgments, bankruptcy details, payment record in previous agreements etc. The payment record may include details of other people living at the same address and their record may affect whether or not the applicant is given credit.
If you have had your application for credit refused because of information on a credit reference agency's records you can ask the creditor which credit reference agency it used. You can then get a copy of the record from the agency. You will have to pay a fee for this. You can ask for the record to be corrected if it is incorrect or misleading. There is, however, still no guarantee that credit will be given.
Bank references
A bank requires your authorisation before it can supply a reference on your account, and they are allowed to charge you for this, and being banks you can be sure that they will! You have a right to see the reference, but this could delay your application obviously.
Red lining
This is a practice sometimes used by creditors to exclude categories of applicant. The creditor will isolate a particular criteria applicable to the applicants it wishes to decline. This could a particular post code, occupation or even a whole area. Naturally this could lead to discrimination, including racial discrimination. If you suspect this has happened to you then you should report the matter to the Trading Standards Office.