Meet the reference agencies
Lesson 2 of 12 in our free Credit Scores & Files guide: a 5-minute money game with the key points below.
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Questions you'll answer
Mo's score is 'Good' on one agency and 'Fair' on another. What's going on?
Quick facts
- Myth: “A lender sees the same 'score' number that you see in a free app.” — The number you see is the agency's estimate. Lenders use your file data with their own scoring rules.
- Fact: “Different lenders can make different decisions on the same file.” — Each lender has its own appetite and rules — a 'no' from one isn't a 'no' from all.
- Fact: “You can be accepted by a lender even with a mid-range score.” — Scores are a guide, not a pass mark. Affordability and the details matter too.
- Keeps a record of your accounts and payment history → Credit reference agency. That's the agency's job: collecting and storing the data.
- Decides whether to give you a credit card → Lender. The lender decides. Agencies don't approve or decline anyone.
- Sets the interest rate you're offered → Lender. Lenders set rates based on your file and their own rules.
- Fixes a wrong address when you raise a dispute → Credit reference agency. Agencies handle disputes, checking with the lender that supplied the data.