Glossary · UK
What is Credit Reference Agency?
A company that collects financial data on individuals and businesses and provides credit reports to lenders, allowing them to assess creditworthiness before making lending decisions.
Full Definition
Credit reference agencies (CRAs) compile and maintain detailed financial histories on individuals and businesses. The three main CRAs operating in the UK are Experian, Equifax and TransUnion (formerly Callcredit). They collect information from lenders (banks, credit card companies, mortgage providers, utility companies), the electoral roll, and public records including County Court Judgments (CCJs), insolvency registers and bankruptcy orders. This data is compiled into a credit report, which lenders use to assess the risk of lending to an applicant. Each CRA may hold slightly different data and produce a different credit score, because not all lenders report to all three agencies. Under the UK GDPR and the Consumer Credit Act 1974, you are entitled to a free statutory credit report from each CRA once per year (or at any time via free services such as Credit Karma (TransUnion), ClearScore (Equifax) and Experian's free tier). You can also dispute inaccurate entries with the CRA directly; if the dispute is not resolved, you can raise it with the Financial Ombudsman Service. Factors that negatively affect your credit report include late payments, high credit utilisation, too many recent applications, and being unregistered on the electoral roll.