No-one has a right to credit. Before giving you credit, lenders - such as banks, loan companies and retailers - want to check whether you are an acceptable risk.
To help them do this, they may check with firms called credit reference agencies to get some basic details about you and your credit record.
These agencies do not keep blacklists or give any opinion about whether or not you should be given credit. They simply provide information about your credit record. It is the lender who decides whether you are an acceptable risk.
To get a copy of your credit record, you can apply to one of the main agencies either on-line:
- equifax
- experian
- callcredit
or by post, You'll need to give your full name (and maiden name if appropriate),date of birth, current address, including house number, street name, district, post town and postcode plus any addresses lived at during the last 6 years.
Enclose a cheque or Postal Order payable to your chosen agency for the statutory fee of £2.00 and send your letter to:
Equifax Plc
PO Box 1140
Bradford
BD1 5US |
|
Experian
Consumer Help Service
PO Box 8000
Nottingham
NG80 7WF |
|
Callcredit plc
PO Box 491
Leeds
LS3 1WZ |
Credit scoring
Many lenders use computerized credit scoring systems which allocate points to various pieces of information given on your application form, such as your age, marital status, your occupation, whether you own your home and whether you are on the electoral register. These points are added together to produce your credit score. This helps the lender predict whether you are an acceptable risk.
Different lenders have different systems and pass marks, so you can be turned down by one but accepted by another. Your credit score is not part of the file kept on you by the credit reference agencies.
Lenders do not have to tell you exactly why they have turned you down, but they should give an indication of the reason.
Your rights
If you are refused credit you have certain rights. In particular you have the right: to know the name and address of the credit reference agency that the lender contacted for details about you; to see any information held about you by that agency; to correct any inaccurate information.
You must act within 28 days of the last time you contacted the lender about the credit deal. The OFT's leaflet No Credit? gives more details about your rights to see your credit record and amend it. The Data Protection Registrar may also be able to intervene in a dispute with a credit reference agency.
