Insights ¦ Your credit file explained

Key Takeaways

• TransUnion’s credit file consolidates diverse data types including financial accounts, electoral register info, judgments, bankruptcies, and fraud markers, underpinning comprehensive credit assessments.

• The information on credit reports can differ across agencies (TransUnion, Equifax, Experian) due to varied data sources, contributor memberships, and timing of record updates.

• SHARE and MODA are primary datasets used by lenders; SHARE provides monthly financial account data, while MODA offers real-time updates, enhancing decision agility.

• Defaults, account statuses, and payment codes provide granular insights into credit performance, with default recording typically after three to six months of arrears.

• Legal commitments such as judgments, IVA, bankruptcy orders, and debt relief orders are retained on credit files for six years, affecting creditworthiness assessments.

• The electoral register data supports identity verification, with provisions for correcting inaccuracies and understanding the impact of not being on the register.

• Search footprints and transient associations are tracked, with footprints visible for two years, capturing applicants’ interaction history with credit agencies.

• The article emphasizes strong security and regulatory oversight; TransUnion is regulated by the ICO and FCA, ensuring data privacy and compliance.

• Consumers have rights under UK GDPR and CCAs, including access, rectification, and dispute resolution, establishing a transparent data rights framework.

• The process for correcting inaccurate data involves the issuer of the data, with disputes handled within 28 days, and the possibility of notices of correction to explain individual circumstances.

• Sensitive data such as judgments and fraud markers are subject to specific removal timelines, typically six years, but can be challenged if inaccurate.

• The article underscores that credit decisions are made solely by lenders using comprehensive data, with no ‘blacklist’ maintained, and encourages regular review of one’s credit report for accuracy.

Key Statistics

• Credit account information, including active and settled SHARE accounts, remains visible for six years from the last update.

• Judicial and insolvency data, such as bankruptcies and judgments, are retained for six years.

• Search footprints are stored for two years from the date of the search.

• Active MODA accounts are reported for up to 50 days after the last update.

• A Cifas warning lasts for 13 months, with a protective registration valid for two years.

• The volume of data sources includes multiple public registers, such as the Insolvency Service, the Belfast Gazette, and Registry Trust Limited.

Key Discussion Points

• The importance of diversified data sources—including financial, legal, electoral, and fraud indicators—in forming a holistic credit risk profile.

• Variability in credit report content across agencies necessitates consumers to regularly review all three reports for accuracy.

• The value of daily updates via MODA versus monthly updates via SHARE in providing timely credit insights.

• Mechanisms and regulatory protections in place to ensure data security, accuracy, and consumer rights.

• The role of account status and payment codes in nuanced credit decisioning, especially regarding defaults and arrears.

• The process for correcting or disputing inaccurate information, emphasizing transparency and consumer engagement.

• The impact of legal judgments, insolvencies, and debt relief on credit scores and borrowing capacity.

• Use of electoral register data to validate identity and assess living stability, along with correction procedures.

• Understanding transient associations and address links for managing financial and identity risks.

• The significance of search footprints as indicators of consumer activity, and disputes involving unrecognised searches.

• The regulation landscape, including oversight by FCA and ICO, providing confidence in data governance.

• The importance for senior managers to recognize the dynamic nature of credit data, and the need for ongoing consumer data management strategies.

Document Description

This article provides a comprehensive overview of TransUnion’s credit file, detailing the types of data collected and maintained, including financial accounts, legal judgments, insolvencies, electoral data, fraud markers, and search histories. It explains how this information is used in credit decisioning, the regulatory environment ensuring data security and privacy, and consumer rights to access and dispute their data. Emphasizing transparency, the article underscores the importance of data accuracy, regular report review, and the mechanisms available for correction, which are vital for responsible lending and risk management in the financial services sector.