When Do Credit Agencies Report?

Every time you make an application for credit, the lender to which you apply requests a copy of your credit report from one or more of the three major credit reference agencies. Lenders use a complicated formula to assess your creditworthiness that is based on a number of factors, not just your credit score.

Accounts Held

Your credit report contains information on all the financial products you hold even if the balance is zero or the account is satisfied. If you've made any late payments, defaulted or settled a satisfied account for less than the full amount due, this information will remain on your report for up to seven years. There will also be information on any applications you've made for credit that have been turned down or which you subsequently declined to take up.

Amount Owed

Your creditors report how much you owe on your accounts to the credit reference agencies once a month. This information is reported to any company requesting a full copy of your credit report along with the credit limits on the accounts you hold. If you are using a high proportion of your available credit, lenders will view you as a higher risk. Your file also contains information on the amount you pay your creditors each month and any promotional offers active on your accounts.

Late Payments

Every time you make a late payment or go over your limit, your creditors inform the credit reference agencies. This information remains on your file for up to seven years and can seriously damage your credit score. Recent late payments have a bigger impact on your file than historical lapses, as do consecutive failures to pay on time. Potential creditors can also see how long you've allowed an account to lapse. If you've been declared bankrupt, it will show on your credit file for 10 years.

Types of Credit and Length of History

Companies viewing your credit report can see when you opened each of your accounts and use this information in conjunction with your payment history to assess your creditworthiness. They can also see the types of credit you've taken out, whether it's a credit or store card, a car loan or a mortgage. Your report may also contain any negative information from utility companies, telecom providers or even public libraries if you have failed to pay any monies that have entered collections.