Do previous occupiers at my address influence my credit rating?
No. The previous occupant of your property could have been a tycoon or a bankrupt - it will make no difference to your credit rating or how lenders see your credit risk. What they are interested in is your ability to pay back a loan and they will consider your own circumstances.

Why to credit application forms ask for previous addresses?
If you have recently moved, lenders will want to know your previous addresses, generally for the last three years, so that they can check that you really were living where you said you were. It can help your credit rating if you are registered to vote, as you then appear on the Voters Roll. This evidence of where you live is one of the factors lenders take into account.

Can family or friends at my address harm my credit rating?
Your credit file has a section listing your financial associates (any people with whom you share a joint account, such as a joint mortgage). Lenders may then check the credit files of these people when they assess your creditworthiness. If the person you are associated with has a bad credit record, then it could influence the chances of getting the credit you want. It won't change your own credit file, but to make sure that you don’t get penalised, it’s important to check that the list in your credit report is correct. It’s also worth getting any financial associates to check their own report before you make a credit application.

Do credit reference agencies decide my credit rating?
No. Credit reference agencies collate the information from a variety of sources and then hold this information in the form of a credit report. This information includes the credit agreements you have, such as credit cards, loans and mortgages, store cards and hire purchase agreements. Your report can also show your repayment history and whether you have any court judgements against you or have been made bankrupt.

How is my credit rating calculated?
Lenders use the information in your credit report along with the information you have given them on your application form, to calculate a credit score. This is a way that they can estimate the risk that you will not repay what you would owe them. In general if you have a higher score and are therefore a lower the risk, then you can find it easier to get better credit terms. It’s important that your credit report is up to date and accurately reflects your circumstances, or your credit rating could be affected.

Is my credit rating bad because I'm on a blacklist?
There’s no such thing as a credit blacklist. Credit agencies hold files on individuals, and lenders make their own decision based on every application. the concept of 'red-lining' or ruling out whole streets or estates is not something that credit agencies do.

What can improve my credit rating?
What does count is stability and continuity. Credit reports can show years of your credit history, and loan application forms often ask for your previous address. Lenders want to see how reliable you have been at repaying other credit agreements over the years, and they like to know that you are not moving from one place to another all the time.