Decoding Credit Reports

Credit files are one of the most important tools a broker can use to understand a client’s financial history, but they can be confusing if you’re not familiar with their structure. Knowing how to read them properly helps you set realistic expectations for clients and approach the right lenders.

What a credit file shows

A credit file records someone’s borrowing history and financial behaviour. In the UK, Experian, Equifax and TransUnion are the three main credit reference agencies. Each collects slightly different data, so it’s often worth looking at more than one report. 

The main sections:

Personal details – Confirms name, address history and electoral roll registration. Small errors here can hold up an application.

Credit accounts – Lists loans, credit cards, mortgages and some utilities. Includes balances, limits and repayment records. Payment history is shown in monthly codes: “0” means up to date, “1” means one month late, “8” usually means default.

Public records – Covers CCJs, bankruptcies and IVAs. These stay on file for six years and can seriously affect eligibility.

Credit searches – Shows who has looked at the report. Hard searches (e.g. a mortgage application) are visible to lenders. Too many in a short period can be a red flag. Soft searches (like a client checking their own file) don’t affect lending.

Beyond the score

Each agency produces its own credit score, but lenders don’t just look at the number. They focus on repayment behaviour, credit utilisation, and wider context like income and deposit size.

Credit reference agency scores are for the clients’ guidance only; lenders create their own internal scorecards using this data, which means a high credit agency score doesn’t automatically guarantee approval. Some lenders specialise in certain circumstances, but you won’t necessarily need a specialist lender just because of past issues. What matters most is the clients' overall financial picture.

What to watch for

Personal details – Check that the client’s full name, any past names, date of birth, and all addresses from the last six years are accurate and consistent.

Electoral roll – Confirm they’re registered to vote at their current address to support ID checks.

Credit accounts – Make sure all listed accounts belong to the client and are still relevant or active.

Payment history – Look for missed or late payments and note any codes showing defaults, arrangements, or partial settlements.

Credit use – Review how much of the client’s available credit is being used — high usage may suggest financial pressure.

Public records – Watch for any CCJs, bankruptcies, IVAs, or repossessions still recorded on the file.

Credit searches – Check the number of hard searches in the past 12 months and flag any the client doesn’t recognise.

Financial associations – Identify any joint accounts or financial links that may no longer be relevant.

Making it work for clients

Credit files reveal how someone manages money. The clearer you can read them, the better guidance you can offer.

For brokers, the value lies in translating these reports into clear advice. Check across agencies, explain any issues in simple terms, and flag problems early. This helps you match clients to the right lenders, saves time in the application process, and builds trust.