There are three main Credit Reference Agencies in the UK – Experian, Equifax and CallCredit. The Credit Reference Agencies record details of credit accounts and the repayments people make towards them. Most people who have borrowed money from a lender will have information held by the Credit Reference Agencies – this is called your credit file.
For many of our customers their account is registered at a Credit Reference Agency, this will show with the name of dlc.
Benefits of making payments.
Where payments are made to an account they are reflected each month to the Credit Reference Agencies and all payments are shown by reducing the outstanding balance.
Where the full balance is paid the account is show as “satisfied” with a nil outstanding balance.
If an agreed reduced amount or discount amount is received to clear the balance, the outstanding balance is shown as “nil” and marked partially settled (“P”) which indicates the account was cleared for a reduced balance.
Consequences of not making payments.
All lenders from mortgage companies to mobile phones providers will use the Credit Reference Agencies and this information will be available to them make decisions about whether to lend money to someone. They can see where no payments are being received and this is likely to have an impact on their assessment.