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Companies
look at credit histories to help them
decide whether they should lend money
to people. They can’t tell if
you’re going to pay your bills
in the future so they feel the best
way to decide if you will make a good
customer is by looking at how you have
behaved in the past.
If you are doing
anything like applying for a mortgage,
a credit
or store card or want to buy something
from a catalogue using credit, the chances
are the company you are applying to
will look at what is known as your credit
reference file before deciding whether
to lend to you. They need your permission
to do this so they’ll probably
request it on the application form for
whatever it is you’re applying
for.
- If you have
a financial link with another person,
for example you have a joint bank
account or credit card, the other
person’s name will show up on
your credit reference file too.
- It is
not the credit reference agencies
that decide whether a company should
lend money to you or not. They just
pass on all the information that they
have gathered on you.
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