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What is a Credit file : The Definitive Guide 2023



What is a Credit file

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A credit file is a collection of information about your financial history which is used by lenders, creditors and other relevant companies and agencies to check for your financial soundness. Your credit file can affect your ability to borrow money, get a mortgage, rent a property,

or even get a job. So, if you’re looking to

understand what a credit file is, I’ll show you

how it works and how you can improve it




Chapter 1

What is in a credit file?



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Your credit file will contain the following personal and financial information about you:

  • Your name, date of birth and any other names previously used

  • Your current and any previous addresses

  • The amount of money you have borrowed and how much you owe

  • Any late, partial or missed payments on your debts

  • Any defaults, CCJs or insolvencies on your debts

  • Any searches or applications for credit that you have made

  • Any financial associations or joint accounts that you have with other people



Your credit file does not include:

  • The amount of money that you have in your bank account

  • Your income or salary

  • Your student loans

  • Your council tax arrears driving or parking fines



Your credit file is compiled by credit reference agencies CRA that collect and store information from lenders, creditors, public records and other sources.


Chapter 2


How is a credit file used?



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Your credit file is used by various companies and agencies to check your identity, verify your address and evaluate your credit risk. Lets look at some examples:


  • Lenders and creditors use your credit file to decide whether to lend you money, how much to lend you, and what interest rate to charge you. They look at your credit history, your current debts and your repayment behaviour to determine how likely you are to repay what you borrow.



  • Employers use your credit file to check your identity and suitability for certain roles especially if they involve handling money or sensitive information. They may also look at any defaults or CCJs on your record to see if you have any issues with financial responsibility.


  • Utility providers use your credit file to check whether you are customer that can pay your bills on time. They may use it to set up a direct debit for gas, electricity or water supply.


  • Insurance companies use your credit file to calculate your premiums and offer discounts and deals for your home or car


  • Mobile phone providers use your credit file to decide whether to offer you a phone contract. They may also use it to set up a direct debit or a monthly payment plan for your network service


Chapter 3


How can I access my credit file?



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You have the right to access your credit file . You can do this by contacting the CRAs directly and requesting a copy. You should check your credit file for possible mistakes, make a list of these and any other problems you find. Online credit reports - GOV.UK (www.gov.uk) You should also compare your credit files from the different CRA s as they may not have the same information about you



Bonus Chapter


How can I improve my credit file?



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A quick win to a good credit file is to make sure all your personal and financial information is correct.


  1. Make sure that you’re on the Electoral Register. This will confirm your identity and address for verification and to determine stability.

  2. A medium to long term win is to build a positive credit history. If you have a little or no credit history you can use a credit card builder, use them every month, then make the repayments every month and on time. Keep this borrowing/repayment routine up for 6-12 months for a positive history to work

  3. Pay your bills on time and in full each month. This will show that you are responsible and reliable with money.

  4. Keep your credit repayment to income ratio low to avoid the risk of financial difficulty. This is the percentage of your available credit that you are using. In a government paper using a You Gov survey it was found that 13% of borrowers were making repayments on unsecured credit which amounted to above 30% of their income and 9% of borrowers to more than 40% of their income https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/208075/bis-13-p187-a-report-using-data-from-the-yougov-debttrack-survey.pdf This figure reflects is a high credit repayment income ratio for almost 20% of the borrowing population.

  5. Avoid making too many applications for credit in a short period of time. This will create multiple hard searches on your credit file which can lower your credit score and make you look desperate for money.

Finally, don’t forget that a credit file is a document that can affect many aspects of your life. If you’re willing to do the necessary work you will increase your chances of getting the best deals and offers from lenders and creditors.


And now, I’ll turn it over to you. Which step would you be interested in improving your credit file. Alternatively, you can reach out to me for a quick no obligation chat by completing the box below



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Winnie Onyekwere

Mediator LLB LLM


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