Credit Reference Agencies
What is a credit reference agency?
A credit reference agency is a company that collects information on the credit history of individuals. The information comes from lenders, mobile phone companies and utility companies. This information is stored and organised by the agency so that it can be easily used by potential lenders to assess a person’s credit risk.
There are three credit reference agencies in the UK: Equifax, TransUnion and Experian.
Why credit reference agencies exist
All UK banks and lenders use one or a combination of these three credit reference agencies to decide whether to offer you credit.
The ICO have shared a useful guide if you’d like to learn more about credit and CRAs.