The name 'credit reference agency' is a UK term, and can
change when you leave the country. Other countries have
adopted the following names:

- Credit Bureau

- Fair Credit Reporting

- Consumer Reporting Agency

- CRA

What does a credit reference agency do?

They are a company that provide credit information about
individuals upon request by companies in which the
individuals have signed permission for the said company to
contact and lookup the individual's background. This credit
information usually being history of ability to pay bills,
any existing or past existing loans, history of delinquent
debts, or currently standing debts. This shows the company
whether the requested individual is capable of paying for
the company's service.

Individuals can get hold of their own credit report
themselves. There are things a consumer can do to improve
their rating, and reviewing a report is the first step
toward correcting the problems. Sometimes credit can be
declined on the basis of one area of your report, so it is
useful to identify that area to aid taking positive steps
toward fixing the problem.

How does the credit reference agency work?

A credit reference agency has many partnering 3rd party
companies which report all data to the credit reference
agency. The agency stores files of all of these people
whether they have current requests to report them or not.
Some of the companies which contact the credit reference
agency are utility companies, loan companies, creditors,
courts, collection agencies, and much more. Typically the
companies that request the information from the credit
reference agency are mortgage companies, lenders, credit
card companies, rental companies, or anyone who would need
a factual outside source other than the individuals' word
to properly assess whether they are capable of paying or
managing credit. Some examples of credit reference agencies
are;

- In the UK - Experian, Equifax, and Call Credit,
partnering with the Trans Union.

- In the US - Experian Business, Equifax Small Business
Financial Exchange, and Dun & Bradstreet.

- In India - Credit Information Bureau Limited, Trans
Union, and Dun & Bradstreet.

How does a credit reference agency create a score?

A credit reference agency uses specific methods of
mathematics to create an average of the person's ability to
pay their debts and rates the overall score with a single
number giving the companies requesting to view the credit
score an easy to understand factor to judge the persons'
financial stability and ability to commit to repayments.