To help lenders make decisions and assess your application for credit, they use a process called credit scoring. Your credit score is a numerical representation of your credit file and predicts the likelihood you’ll pay your credit on time in the future.
As part of the credit scoring process, lenders will consider information from credit reference agencies alongside their own lending criteria. Your credit history is all the information held on how you’ve managed credit in the past.
The more data you have in your credit file, the more likely it is that lenders will be able to identify you if you apply for financial products. These may include loans, mortgages, credit cards and other common household bills including phone and energy contracts.