How Do I Interpret a Credit Check?
A Tenant Credit Check combines a comprehensive identity check with a credit score and adverse information checks.
Where is the Credit Check Information Sourced?
We source the credit check data from Equifax which is one of three credit reference agencies (CRA) in the UK. The others are Experian and TransUnion.
The information is supplied by local councils, banks, credit cards, lenders, telecoms and utility companies to the CRAs who collate the information and supply it to credit check suppliers such as ourselves.
Most of the information held by the CRAs relates to how individuals have maintained their credit and service/utility accounts. It also includes details of previous addresses and information from public sources such as the electoral roll, public records including county court judgments, and bankruptcy and insolvency data.
The information held by the CRAs is also used to verify the identity, age and residency of individuals, to identify and track fraud, to combat money laundering and to help recover payment of debts. Government bodies may also access this credit data to check that individuals are entitled to certain benefits and to recover unpaid taxes and similar debts.
Credit reference agencies are licensed by the Financial Conduct Authority.
Identity Verification
The identity verification performs several checks which are grouped into three categories, Residency, Identity and Alerts.
The minimum requirement for an identity to be verified is:
- 2 Residency matches
- 1 Identity match and
- 0 Alerts
Anything less than a score of 2-1-0 will result in the identity not being verified.
If the identity is not verified then you could request further information such as a bank or credit card statement.
You could also request photographic identification such as a driving licence or passport.
Zero Matches
Sometimes a report shows zero matches of the individual to the address. This usually means the individual does not reside at that address or they have moved there so recently that records have not yet been updated.
We would not recommend granting a tenancy in this scenario without a guarantor.
Credit Score
The credit score is a numerical score between 0 and 500.
It is calculated using a combination of factors such as payment history; the amount of debt the individual has and the length of their credit history.
- 0-99 - Very High Risk - we do not recommend you consider this tenant
- 100-199 - High Risk - could be a suitable tenant with extra protections such as a guarantor
- 200-299 - Moderate Risk - may be a suitable tenant with extra protections such as a guarantor
- 300-399 - Low Risk - likely to a suitable tenant
- 400-500 - Very Low Risk - likely to be a good tenant
Electoral Register
Details of the individual and associates on the electoral register at the address will be included if there are any matches.
The Tenant Credit Check only shows details of people who are on the open (edited) register, not details of the full register. If a person has opted out of the public electoral register, they will not be shown on a tenant credit check.
You can find more information on the electoral register here:
https://ico.org.uk/for-the-public/your-data-and-elections/electoral-register/
Aliases and Associates
The report will check to see if the subject has any aliases and will check for any financial associates.
Linked Addresses
The report will attempt to find addresses linked to the report subject such as previous addresses. You can click through to see more information on the person the address such as Electoral Roll and Court and Insolvency Information.
Linked addresses are all the addresses that the individual or any of their financial associates have lived at and where they have taken out a credit agreement. Past and present addresses become linked when:
- You have provided a company your current and previous address and they do a credit search against both of them.
- You tell a lender that you've moved, the next time they update your account information they will link your current and your old address
- Linked address information remains on the credit report indefinitely
Watchlist
The Watchlist screens individuals against Sanctions and Politically Exposed Persons (PEP) lists to identify target matches.
The Watchlist Summary is displayed as a panel on the report.
You can click on the Full Watchlist Report button to see more information about any matches.
The Watchlist checks for alerts in the following categories:
| Category | Description |
|---|---|
| Sanctions | Sanctions are measures primarily adopted by governments against a regime, organisation or individual that is believed to be in violation of international law. They are usually political, diplomatic or economic in nature and aim to prohibit illegal activity by high-risk individuals or groups. |
| Politically Exposed Persons (PEPs) | A PEP, or Politically Exposed Person, is an individual who holds the office of a prominent political function. The position of a PEP can mean that they are higher-risk individuals due to the influence and power that their position might hold, which may make them susceptible to bribery and corruption. |
| Relatives & Close Associates (RCAs) of PEPs | Relatives and Close Associates (RCAs) are individuals that are associated to a PEP by a family, friend or business connection, and can include parents, siblings, friends, legal advisors, and business associates. RCAs are also known as ‘secondary PEPs’. |
| Special Interest Person / Entity (SIP/SIE) | Special Interest Persons (SIPs) and Special Interest Entities (SIEs) are individuals or organisations that present a heightened level of risk due to their suspected or confirmed involvement in criminal activity. Association with these parties can represent both reputational and legal risk. |
Court and Insolvency Information
Details of any bankruptcies, insolvencies or County Court Judgments (includes CCJ or IVA). These stay on the credit report for 6 years.
You can see the Court that issued the judgement and whether the CCJ has been satisfied.
CCJs are assigned type codes so you can tell what they are for:
| Code | Description |
|---|---|
| ADO | Administration Order |
| BKY | Bankcrupty Order |
| CD | Court Decree (Scotland) |
| CJ | County Court Judgement (England, Wales and Northern Ireland) |
| CJP | County Court Judgement Paid |
| DAS | Deed of Arrangement |
| DRO | Debt Relief Order |
| PTD | Petition for Discharge of Sequestration |
| SQA | Sequestration Actioned |
| VAR | Voluntary Liquidation |
Notices of Correction
Statements to explain potentially misleading information.
