Using Credit agencies

Most lenders go through two main credit reference agencies for information on your financial past – Equifax (0844 335 0550) and Experian (0870 241 6212).

Credit agencies compile credit histories from a number of sources, including the electoral roll, county court judgments and how effectively past debts have been paid. Every time you open a new form of credit it will leave an electronic footprint on your record.

The decision to turn borrowers down for credit isn't made by Experian or Equifax but by the lenders, based on their own criteria. Although you may find the lender simply tries to tell you that you need to speak to the credit agency.