Who holds the data?
Your credit files are held by companies called credit reference agencies. they hold files on nearly all UK consumers.

Who has access to credit reference agency files?
The files can be searched by any lender that has the appropriate Licenses and complies with legal requirements for access to personal data. The files can also be searched by the subject, in other words you can search yourself - provided you do so through the proper channels.

Is there a 'credit blacklist'?
No, credit agencies do not have any such things. The agencies simply keep records which are provided to them by store cards, credit cards, banks and other lenders, and some utilities. These records show how promptly people pay their accounts, and whether they miss payments or get into arrears.

What is a 'credit score'?
Credit scores are methods of deciding the level of risk or confidence that an individual appears to represent. By using the same scoring methods for every applicant, the company making the decision can remove unfair prejudice or human error more easily. On the other hand, the scoring methods can therefore be inflexible, so most lenders allow for some discretion in making a final decision. Different companies have different methods and criteria, which is why you can be granted credit with one company but declined by another.

How do lenders calculate my credit limit?
Each lender will have their own criteria and use their own internal guidelines. However there are some general guidelines which some lenders may consider along with the information on your credit report. Credit reference agencies do not decide whether to extend credit, they only provide the credit report. Lenders may calculate a short-term debt-to-income ratio, where they calculate your current short-term debt payments (excluding your mortgage) and divide this by your total annual income. Some lenders may refuse you credit if your short-term debt is more than 20% of your annual income. Another calculation is to add up your monthly bills (not including rent or mortgage and utilities) and divide the total by your gross income (before taxes) and here lenders may look for debt to be less than 35%. These are only guidelines and lenders are frequently revising their processes.

I've been declined credit, what should I do?
You cannot demand credit. It is a service which the lender can choose whether to provide. Most lenders will look at your credit records before making a decision. If you are declined credit the lender is not required to explain exactly how they arrived at the decision, but they are required to co-operate and give you an idea and tell you if they looked at your credit files with a credit reference agency. If they have looked at your credit files, then they must tell you the name and contact details of the credit reference agency that they used. You then have the right to write to the credit reference agency directly, and ask them for a copy of your credit files. You cannot ask the agency why you were declined credit - the agency cannot tell you that, they can only provide the information without comment. You can then look at your files and see if there are any factual errors which need correcting. If your credit record is weak or has problems, but the information is factually correct, then you cannot remove it from your files. You can, under some circumstances, make a comment which is recorded on your file, for example to explain the circumstances for a missed payment or any other adverse information.

Can I boost my credit rating?
There is not just one credit rating, each bank, credit card, store card, or finance company will have their own credit limits. But if you want to maximise your credit worthiness then these are a few tips that may help. Make sure you are listed on the Voters Roll and if possible avoid moving address frequently. Most people move house once occasionally, but remain in the same house for a few years before moving again. If you appear to move address frequently a lender may consider you as being potentially harder to trace in the event that you default on a loan. Paying all your utility bills promptly, and paying all store and credit cards promptly will give you a stronger credit history.