How Does Your Credit Report Work


Before a Mortgage Lender will agree to lend to you a penny they will first go through some checks. The 2 key checks are:

a)      affordability; and

b)      credit check. 

If you get turned down because of your credit rating by one mortgage lender, it is possible that another mortgage lender will accept your credit rating. 

You have a credit file stored with 3 different credit reference agencies; Experian, Equifax and Callcredit.   

Is a low credit score bad?

The truth is that Mortgage Lenders have different credit check criteria; some take a more commercial view whereas some are stricter. If a mortgage lender’s commercial goal is to take on more high risk business with an aim to make more money from interest and penalties, then they will be prepared to accept credit reports with a low score. Whereas, if the mortgage lenders only want to take on low risk debt, people who never pay late or miss payments, then they would refuse a low credit score. 

Mortgage lenders can't afford to have a human check each credit report, so will use computers to assess a mortgage application. It is important that the information is correct inside your credit report, otherwise a slight error like an incorrect home address or not being on the electoral role, might cause the mortgage lender's computer to reject your mortgage application. 

What can affect your credit score?

Your credit report doesn't just show information on your credit cards; it lists out all credit information, along with living history, your electoral registration. These are just some of the factors that can affect your credit score:credit report


a)      Incorrect addresses

b)      Not cancelled mobile phone contracts

c)      Regular credit searches

d)      Not being on the electoral role

e)      Default Payments

f)       County Court Judgement

g)      Bankruptcy Order

h)      Missed credit payments

i)       Unsuccessful credit applications


How do you improve your credit score?

Read our guide on how to Improve Your Credit Score. Anyone can have a good credit score within a few months - read how.


Get Your Credit Score

You can get a free credit report - with your credit score - by visiting the websites of either Experian, Equifax or CallCredit.