C in the A to Z of Advice

Date published: 24th September 2020


What is a Credit Assessment?

Credit assessment is used by lenders to decide whether to grant someone credit, for example, a personal loan or mortgage. You cannot alter accurate records held by a credit reference agency about your financial commitments. You do however have the right to check and correct the information held about you.

If you wish to obtain credit, your credit application will be assessed by the lender to whom you’re applying for credit. A lender may use a credit reference agency, credit scoring or bank references to do this.

Credit reference agencies provide factual information about your credit agreements with your consent, so that a creditor can use this, together with the information you give on your application, to make a decision about whether to lend you money. Usually you give this consent when you sign the agreement. There is no ‘blacklist’ of people who should not be given credit. Credit reference agencies do not express any opinion to lenders about the information they provide, nor are they informed whether or not the application for credit has been granted. All information on your credit file is there for a minimum of 6 years.

Back to news