A good Credit History can be key to securing credit

Borrowers should be aware that when assessing a credit or loan application Banks and Credit Providers will look at your recent credit history as well as their own internal records of how you operate your bank accounts and loan facilities.

How do banks access your credit history?
In Ireland, banks and other credit providers check the Central Credit Register (CCR), a national database of information on consumer and business loans, established by the Central Bank of Ireland. This records all loan and credit facilities for personal and business borrowers, covering repayments on all loans and credit facilities over €500 in the last 5 years. Banks will assess the information on the borrower’s credit report from the CCR and any negative information such as missed payments or restructures information may lead to an automatic ‘No’.

It’s important to note that the bank makes the lending decision, not the CCR – however we find the CCR information is a key element of that decision, especially as banks increasingly automate their decision. While automation enables banks to respond more quickly to their customers, it can be difficult to ensure a positive outcome if your credit track record has any blemishes or issues.

What should I do?

If you are applying for a loan, you should check your credit history on the CCR before you apply. This may help you spot any missed payments or errors in your credit report that you may be unaware of, and that you need to address before making your credit application.

You can check out your credit history (personal and business)  free of charge any time. The CCR website provides guidance on how to do so, and what to do if there are errors on your report. Furthermore, to provide context to lenders viewing your report you can upload a 200-word explanatory statement to clarify specific loan information, such as arrears caused by exceptional circumstances that may have been outside of your control.

And remember, if you are refused business credit by your bank, Credit Review can help. Our solutions-focused reviewers will work with you to better understand why the bank has refused your application, and craft a suitable credit solution that works for both borrower and bank.

For more information on our independent appeals process, visit creditreview.ie or call 0818-211789