What is a Credit Reference Agency?

Описание: Watch the full video about Equifax Credit Report & Score: https://www.equifax.co.uk/

A credit reference agency, also known as a CRA, gathers information on individuals to build a credit report. This report is used by lenders and retailers to help them decide whether or not to provide credit. CRAs can also help individuals by accessing their credit reports to see what changes can be made.

CRAs regularly update credit reports, and this in turn can change your credit score. That’s why it’s a good idea to continue to check your credit report, not only to see positive changes, but see ways you can improve your credit score.

Transcription:

For many of us, applying for credit is a part of life. Whether it’s for a phone contract, a credit card, a mortgage or a car, your creditworthiness will be checked for suitability. When you apply for credit from an organisation, it will receive your credit information from a Credit Reference Agency, also known as a CRA. This is how they work out if giving you credit, which you will need to pay back over a period of time, presents a risk.

However, a CRA can also show you how your credit rating appears using a credit score. You can also see different parts of your credit history that might be affecting your credit score positively or negatively.

Equifax, as a CRA, holds both your credit information and publicly available information, such as whether you are on the electoral register or not.