Credit report searches1
01/12/2011

This fact sheet explains previous searches on your credit report. More detailed guidance about your full credit report is available from the credit reference agencies (CRAs).

What are previous searches?

The credit reference agencies must keep a record when anyone looks at your credit report. This is so that you know who has looked at your report, when and why. We call these records ‘previous searches’ or ‘footprints’. Depending on the CRA in question, previous searches stay on your report for either one or two years. Previous searches do not show the outcome of your application for credit or any other financial product.

Are there different types of searches?

Yes, each previous search will tell you when and why a named organisation carried out the search. Your report can actually be searched for many different reasons, with your permission, including the following.

• You have asked to see your own report.
• You have applied for credit and the lender is assessing your creditworthiness.
• You have applied for another financial product and the organisation is checking your identity.
• You have asked the lender for a price quotation and they need to look at your report before providing this.

Can searches affect credit scoring?

When lenders look at your report, they can see any previous searches that resulted from you applying for credit. They are allowed to use these searches to help make decisions about you, normally when calculating your credit score. Other types of searches are not usually visible to lenders and do not affect your score. You can check your own report as often as you wish and this will not harm your credit rating.

Lenders use previous searches because certain patterns can, along with other information, indicate high-risk. For example, a lot of credit applications in a short space of time can signal someone applying for more credit than they can afford. It could also be a sign of fraud.

It is possible for you to have lots of credit-application searches quite legitimately. For example, you may move house, get a new mortgage and buy a number of different things on credit. That is why lenders always use previous search information along with other information to help build a score, so a number of credit applications alone should not normally cause a problem for you.

What if I am refused credit?

If a lender refuses to give you credit it will tell you the main reason, including whether information on your credit report played a major part. If it did, you should request your report. To avoid your credit report looking unusual, it is sensible not to keep applying for credit until you have made these simple checks.

Can I shop around without damaging my credit score?

If you are shopping around and comparing various credit offers, make sure you don’t actually apply for credit until you have decided on the best deal. If a lender needs to check your credit report before telling you what interest rate it is likely to charge you, it will tell you (usually on the credit application form).

Lenders will tell you if they are able to give you a credit quotation (to tell you what interest rate you are likely to qualify for) without registering a credit application search on your credit report. In this case, the lender will register a quotation search on your report and this does not affect your credit score.

Specifically, if you are shopping around for a mortgage, do not apply for a ‘decision in principle’ until you have decided on the best deal. A decision in principle is not a price quotation – you are asking for a commitment to grant you credit, so this will register a credit-application search.

What happens if I check my credit report and find a mistake?

If you find something you disagree with on your credit report, make sure you question it. You can either ask the credit reference agency to investigate this for you or you can go straight to the organisation that registered the information. By law, the information on your credit report should be accurate and up to date, so any disputes should be investigated and resolved quickly.

Who are the credit reference agencies?

The three consumer CRAs in the UK are Experian, Equifax and Callcredit. Here are their contact details.

Experian - www.experian.co.uk - 0844 481 8000

Equifax - www.equifax.co.uk - 0844 335 0550

Callcredit - www.callcredit.co.uk - 0870 060 1414