If you’re over 18 and have ever taken out credit, a credit reference agency is likely to hold a credit report on you. It’s a personal history of the credit you’ve had, including mortgages, credit cards and even mobile phone contracts

Credit ratings are used by lenders when deciding whether to accept an application for credit.This could involve anything from a mortgage or loan, to applications for a credit card or a mobile phone contract.

But, during tough economic times, lenders are being more choosy about who they lend money to.

It is important you know what information is held on your credit reference file as it may be incorrect and therefore hindering your credit applications. It could be that your details are being used for fraudulent activity so you need to check the file regularly.

There are three Credit reference Agencies: Experian, Equifax and Callcredit, so best to check them all.