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Sign up now5 credit report myths debunked
Misconceptions stand in the way of people getting the most out of their credit reports
Your credit report contains the footprints of your financial life. It is used by lenders to make decisions big and small – but do you know what’s in it?
We surveyed 4,193 members of the public in July 2024, and asked them to separate fact from fiction on credit reports. The results uncovered gaps in knowledge and misconceptions across the board.
Here, we unpack five common myths about credit reports, and explain what you need to know to make sense of your credit score.
1. You only have one credit report
65% of respondents to our survey didn't know they have more than one credit report.
You don't have one centralised report and score that you access via different companies. Instead, you have different credit reports with each credit reference agency (CRA).
There are three main CRAs: Equifax, Experian and TransUnion. Each of these companies gathers information about you from banks and lenders, as well as sources such as the electoral roll and Land Registry.
When you apply for any type of credit – for example a mortgage, a credit card, or even a phone contract – the lender will likely take information from one of these providers to inform its lending decision.
Some lenders, including a few of the bigger banks, use data from more than one agency.
70% of people we surveyed who had checked their report in the past five years had only done so with one provider. But, if you check only one report, you might end up using a different agency to the one used by the lender when you apply for credit.
2. It costs money to check your credit report
Before 2018, there was a £2 charge to check your statutory credit report, and 41% of the people we surveyed didn’t know that it’s now free to check it.
You have the right to access your statutory credit report for free at each of the credit reference agencies (CRAs). Here's how to do it:
| Equifax | Experian | TransUnion |
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CRAs often encourage you to sign up to their paid services, which provide a report and score, plus tips on how to improve it. They don’t always advertise the free statutory report as prominently.
Your statutory credit report doesn’t come with a score attached, but some services such as ClearScore and Credit Karma let you check your score for free.
These companies make their money by acting as brokers that connect users to products, such as credit cards or loans. Be mindful when using these services that it's not always in your best interest to sign up for more credit.
- Find out more: how to check your credit score for free.
3. Checking your report damages your score
Regularly checking your credit reports is a good way to stay on top of any mistakes or negative impacts – but 45% of people didn't know you could check your report as often as you like without any negative impact on your score.
What will damage your score, however, is applying for a lot of credit products.
When you apply for credit, a lender will do a ‘hard search’ on your credit file to look at your information, and this search stays on your report for two years. A hard search will have a minor negative impact on your score, but many searches in a small period of time will result in a more significant impact.
If you've applied for credit recently, consider leaving six months before applying for any more if you can. Lenders often see successive requests for credit as a sign that someone is in financial trouble and might struggle to repay debts.
- Find out more: what is a credit report?
4. Current accounts and salaries are included
40% of people we surveyed thought the amount of money in your current account would be included on your credit report.
In reality, the only account balances in your report will be for credit accounts, for example your credit card balance or utility provider accounts.
Similarly, 45% of people thought your salary was included, but credit reference agencies don’t have this information.
When you apply for a credit product, the lender will likely ask you about your earnings and use the information as part of its decision.
There is also no record of the amount of income tax you’ve paid, which 42% of people expected to feature in their report.
Which? Money Podcast: why your credit score could be wrong
5. Fines appear on credit reports
Your credit report holds information on debts and defaults, and this acts as a warning signal to lenders.
However, contrary to what some people expect, not all debts and fines are included.
For example, 28% thought parking or driving fines would pop up in their reports, but this information isn't shared with credit reference agencies.
Just as with income tax, council tax payments and arrears also aren’t recorded in your report. Despite this, 61% of people thought both would feature on credit reports.
Missed mortgage payments will appear on credit reports for six years, but rent payments and arrears do not appear.
If you have a thin credit file, meaning you don’t have a detailed history of borrowing, you can sign up to services that add your rent payments to your report to increase your likelihood of being accepted for credit.
The best way to know for sure what’s on your credit report is to check it with each of the three main credit reference agencies.
- Find out more: how to boost your credit score
