Credit reference agencies provide factual information on consumers from a multitude of sources to help lenders make informed credit decisions.
It is a misconception that credit reference agencies decide whether a lender should provide credit. This decision is made by the lender.
Lenders will consider information provided by the applicant, in addition to data provided by one or more credit reference agencies and any account history, in the case of previous or existing customers.
Risks are weighed differently between all lenders, so it’s common for a person to be accepted by one lender and refused credit by another.
Acceptance may also be determined by the type and value of the credit being applied for. A cash loan is generally considered a higher risk to the lender than financed goods. Like a car on hire purchase.
Registering on the Electoral Roll as well as providing accurate and complete personal information to the lender may improve your chances of obtaining credit. It also really helps if you regularly pay bills and other credit instalments on time.
Each time you apply for credit, a lender is very likely to perform a credit search on you with one or more credit reference agencies, which can leave a footprint on your record. A high volume of credit searches over a short period of time, may also have an adverse impact on your credit rating.