Credit myths expelled

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- Check your credit hasn't been tampered with
- Tips on avoiding identity theft

Is student loans data shared with Credit Reference Agencies? What happens if information on a credit report is incorrect? Consumers are more confused than ever by what information is shared with Credit Reference Agencies and why they might be refused credit by lenders.

Online credit information provider, Equifax, helps consumers understand how their credit file impacts on their credit status by uncovering common misconceptions.

Here are a number of common credit myths which Equifax dispel:

Myth 1: When children enter into credit agreements, the information goes onto their parents' credit report.

False.

Individuals can get credit from the age of 18 and all credit information is then put on their own credit report.

However, if parents open an account for a child in their name, or become a guarantor, that information stays on their credit report for six years after the account has been cleared.

Myth 2: I have a good credit rating, but was still refused credit. There must be something on my credit file that I can't see which is stopping me from getting credit.

False.

When an individual applies for a copy of their credit report they see everything the lender sees. Lenders don't base their decisions purely based on the credit report information, they also use their own credit scoring system.

Return to the lender to confirm whether the refusal was based on your credit report or credit score to add clarification and allay any fears.

Myth 3: I had a County Court Judgment against me, which has been satisfied, but I'm still having trouble getting credit or even a new mobile phone account. Nobody seems to be able to help me change this.

False.

If a CCJ has been satisfied you simply apply to the lender for proof of this and then contact the credit reference agencies. They will place a Notice of Satisfaction on your credit file, which lenders will be able to see.

Myth 4: I was recently refused credit because my address doesn't exist and I'm not on the Electoral Roll. Both these facts are wrong, but this must mean Equifax doesn't have any record of me.