Following up from our blog on improving your credit score, we wanted to clear up what is and what isn’t recorded on your credit report. It can be hard to know what exactly is reported on your credit record so we have the low down on everything you need to know.
What is recorded on your credit report
Missed or late payments: If you miss a payment or make a late payment on a credit agreement it will show on your credit record. This can be anything from a credit card, a loan, mortgage or overdraft.
Whether your home has been repossessed: If a lender has taken action and repossessed your home, this will be visible on your credit file. Whilst the majority of your records will remain on your credit file for 6 years, repossession will stay on your record for 7 years.
Court records: Any County Court Judgements will be visible on your record and will negatively affect your score. A County Court Judgement can be issued if you don’t repay your debt or keep up payments to a company.
Bankruptcy: If you are declared bankrupt it will remain on your credit file for 6 years even if you have been discharged.
What isn’t recorded on your credit report
Mobile phone contract: Your repayments on your mobile phone won’t show on your credit report so it isn’t possible to build up good credit this way. Unfortunately, if you miss payments or it defaults it will show up on your file and will negatively affect your score.
Gas, electricity and water bills: You might be surprised to know that not all companies will report to credit reference agencies. It is important to note that some do and if you fall behind on payments it can have a negative affect on your credit score.
Rent: Typically landlords don’t report to credit reference agencies however it is still possible to build up good credit if they report your payments. Landlords will usually carry out a tenancy check before you move into a property however they only have access to publicly available records.
Council tax: Currently the council don’t report tax payments to credit reference agencies and even if you fall into arrears, if it goes to court the matter will be a criminal matter not a civil one. Any fines that would be imposed by the Magistrates wouldn’t be reflected on your credit file either.
Pre-paid credit cards: Pre-paid credit cards won’t show on your credit file as you aren’t borrowing money or repaying anything. If you need to build up credit and can’t get a credit card or loan, consider taking out a credit builder pre-paid card instead.