UK Credit Problems - Credit Reference Agencies

Credit Reference Agencies store financial information on all UK citizens. These agencies provide lenders with factual information which in turn helps the lenders to make their decision whether they will lend you money, grant you credit or not. The two main UK Agencies are called Experian and Equifax. Credit Reference Agencies do not actually make credit decisions themselves they only provide the information to potential lenders and it is the lenders who calculate your credit score.
Some of the information is public, such as address from the electoral register, county court information, and information on bankruptcy. If you are not on the electoral register you will find it hard to find a lender who will lend you money. The Credit Reference Agencies have records of any CCJ’s (county court judgements) against you.
They also hold information on credit accounts and any credit agreements that lenders have with borrowers.

Lenders share credit information about you as they benefit to do so, as they may well need the information themselves at some time or another. The fact that you have repaid a loan in full is not the only information a lender can find from CR agencies, they can also tell if you had difficulty in repaying.
If you have an application for a loan turned down you should not feel insulted or despair as it could simply be that at that particular time your credit score could have been lower than the acceptable cut off score. Maybe you have just moved home or jobs. Many details are looked at when calculating your credit score, there are many factors examined and it’s not simple.
Even when you already have several credit commitments which you consider manageable, you may still be refused by a lender for further credit. It could simply be the fact that they believe enough is enough, they may believe that to grant you any more credit would push you over your comfort zone and into repayment difficulties. Having said this you can appeal, supplying bank statements and proof to support your application could sway them to change their mind if you feel you realy need the finance.

What are Credit Ratings and Credit Scores? - click the link for more info