Information guide
CHECK YOUR
CREDIT REPORT

Information guide
CHECK YOUR
CREDIT REPORT

Credit, credit referencing and CRAs
Some basics

Credit is the ability to borrow money or access goods or services with the understanding that you’ll pay later.
Lenders, merchants and service providers (known collectively as creditors) grant credit based on their confidence you can be trusted to pay back what you borrowed, along with any finance charges that may apply.
To the extent that creditors consider you worthy of their trust, you are said to be creditworthy, or to have “good credit.”

Credit referencing supports lenders in the process of making decisions when you apply for credit. It’s a process that involves both lenders and credit reference agencies. Working together, they share financial information about you, to help assess your credit history and judge your ability to repay future credit. This information – which builds your financial credibility – is then kept up to date through regular updates by the lenders to the credit reference agencies.

A credit reference agency (CRA) is an independent organisation that securely holds data about you – including things like your credit applications, accounts, and financial behaviour. In some countries, CRAs are also called credit bureaus.
Credit, credit referencing and CRAs
Some basics

Credit is the ability to borrow money or access goods or services with the understanding that you’ll pay later.
Lenders, merchants and service providers (known collectively as creditors) grant credit based on their confidence you can be trusted to pay back what you borrowed, along with any finance charges that may apply.
To the extent that creditors consider you worthy of their trust, you are said to be creditworthy, or to have “good credit.”

Credit referencing supports lenders in the process of making decisions when you apply for credit. It’s a process that involves both lenders and credit reference agencies. Working together, they share financial information about you, to help assess your credit history and judge your ability to repay future credit. This information – which builds your financial credibility – is then kept up to date through regular updates by the lenders to the credit reference agencies.

A credit reference agency (CRA) is an independent organisation that securely holds data about you – including things like your credit applications, accounts, and financial behaviour. In some countries, CRAs are also called credit bureaus.
CRAs bring important benefits to European consumers

Increasing consumers’ access to affordable credit
by helping credit providers better evaluate borrowers’ financial situation, allowing providers to grant credits they would normally refuse based on incomplete data

Preventing consumers’ over-indebtedness
by ensuring credit providers have a clear picture of the amount of debt held by a borrower so that effective decisions can be taken to avoid burdening borrowers with debts they cannot repay

Supporting sound economic growth and consumers’ well-being
by promoting SME´s growth and improving consumers’ lives while helping to ensure the European economy remains healthy and sound

Improving borrowing discipline
by helping consumers gain a clear picture of their own “financial standing”, enabling responsible financial management and a better management of their finances
CRAs bring important benefits to European consumers

Increasing consumers’ access to affordable credit
by helping credit providers better evaluate borrowers’ financial situation, allowing providers to grant credits they would normally refuse based on incomplete data

Preventing consumers’ over-indebtedness
by ensuring credit providers have a clear picture of the amount of debt held by a borrower so that effective decisions can be taken to avoid burdening borrowers with debts they cannot repay

Supporting sound economic growth and consumers’ well-being
by promoting SME´s growth and improving consumers’ lives while helping to ensure the European economy remains healthy and sound

Improving borrowing discipline
by helping consumers gain a clear picture of their own “financial standing”, enabling responsible financial management and a better management of their finances
Initiative promoted by

EU Transparency Register: 21868711871-63
Initiative promoted by

EU Transparency Register: 21868711871-63
Some contents in this website are adapted from the Guide “Understanding your credit information and how lenders use it” produced by Experian Limited, Equifax Limited and TransUnion Information Group Limited and are used under the Creative Commons Attribution-ShareAlike 4.0 International License.