What is credit referencing?

Credit referencing enables lenders to make instant decisions when you apply for credit. It's a process that involves both lenders and credit reference agencies like Equifax. Working together, they share financial information about an individual to help assess their credit history and judge their ability to repay future credit. This information is then kept up-to-date through regular updates by the financial companies to the credit reference agencies.

What information is being shared about you?

Lenders will contact Equifax to find out how much credit you have borrowed and what your repayment history has been like. Public information like electoral register data and whether you have any court actions for debt will also be shared. Lenders will then use this data to make a quick, informed decision when credit is applied for.

Your credit report can influence the financial products you’ll be accepted for. In simple terms, if a lender views you as being more likely to repay, and less likely to default on a payment, they’ll be happier to offer you a lower interest rate. This is known as risk-based pricing or sometimes ‘rate for risk’.

Like to know what information is on your credit report? Want to understand how your credit score affects how a lender may view your creditworthiness? Get your Equifax Credit Report & Score now.

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