Banks and other lenders generally send information about borrowers to a central database that is operated by a credit reference agency or credit register. This information includes what credit agreements you have made and your history of repaying them. It is used to generate a credit rating or credit score, which indicates whether your credit repayment record is good or poor.
The database is available for lenders to consult to see if potential borrowers have ever defaulted on loans. The aim of the system is to help lenders to assess the ability of borrowers to repay any future debts.
Central Credit Register
The Central Credit Register is a new secure system for collecting personal and credit information on loans. It is operated by the Central Bank of Ireland, under the Credit Reporting Act 2013.
Since 30 June 2017 lenders, including banks, credit unions, and any other lender that provides consumer loans of €500 and above, have been submitting personal and credit information on those loans to the Central Credit Register. Consumer loans include credit cards, mortgages, overdrafts, and personal loans. From 30 September 2018, it will be compulsory for lenders to access the Central Credit Register when considering a credit application of €2,000 or more. Read more on centralcreditregister.ie.
You can request your credit report anytime, free of charge, subject to fair usage.
Credit reference agencies
Credit reference agencies collect both negative information and positive information about consumers. Negative information is information about any default on credit repayments, such as arrears, missed payments and bankruptcies. Positive information is information relating to your overall financial standing, such as your overdraft limit, the limit on your credit card and records of your repayments.
The main credit reference agency for individuals in Ireland is the Irish Credit Bureau (ICB) but there are several other agencies, mainly dealing with businesses.
The ICB compiles a private database of information supplied by its members, which are the main financial institutions, including some credit unions. Local authorities are also members. Membership does not include utility companies or retail outlets. The database includes information on a wide range of loans, including personal loans, mortgages and credit card loans. That information is available only to you and to members of the ICB.
The ICB does not decide whether or not you get a loan. Financial institutions use the information held by the ICB when deciding whether or not to lend to you.
International credit rating agencies (for example, Moody’s, Fitch’s, Standard and Poor’s) generally assess business debts and have little relevance to consumers.
Information about you
The Irish Credit Bureau’s database will only hold information about you if you have had an active loan in the past 5 years and if your lender has provided information to the ICB. The information is held in an individual credit report. It includes:
- Your name, date of birth, address(es) used by you in relation to financial transactions
- Names of lenders and account numbers of loans that you currently hold, or that were active within the last 5 years
- Repayments made or missed for each month on each loan
- Failure to clear off any loan
- Loans that were settled for less than you owed, and
- Legal actions that your lender took against you.
The system records when a lender has consulted it, so you can find out if this happened in your case. Every financial institution that is a member of the ICB is required to provide you with details of any credit reference agency it has used when assessing your application for a loan.
Credit agencies may publish lists of judgments registered in the Central Office of the High Court (for example, such lists are published in Stubbs Gazette and some newspapers). This is public information. You have no control over its publication or the use that is made of it.
Summary of your credit status
Credit scoring is a technique which summarises your credit status at a particular point in time. The ICB will calculate a Credit Bureau Score (CBS) based on your credit report if a lender requests it (only if the lender is an ICB member).
If you have a good record of repaying loans, then you get a high score. You get a low score if your repayment record is poor. The only way to improve your credit score is to improve your repayment record.
Your consent is required for the provision of information about your credit history to the Irish Credit Bureau. However, it is sometimes the practice that such consent is an integral part of your credit agreement, so you may not notice that you have given consent.
You have the usual rights under the Data Protection Act 2018 to access the records held about you by credit agencies and to have incorrect information rectified. You may ask the agency to provide you with a copy of the personal information it holds about you. If this is inaccurate, you may ask the agency to correct it. If you are not satisfied with how the agency deals with you, you may appeal to the Data Protection Commission.
Requirement to consult information on databases
The European Communities (Consumer Credit Agreements) Regulations 2010 (SI 281/2010) provide that creditors, before agreeing to give you a loan, are obliged to assess your creditworthiness based on sufficient information obtained from you and, where necessary, from a database of such information. They also provide that, if you are refused credit because of the information found on the database, the creditor must immediately tell you this and give you particulars of the database used. This legislation applies to personal consumer credit agreements for amounts between €200 and €75,000 and it does not apply to mortgages.
Regulation of credit agencies
The EU has put a framework in place to regulate credit rating agencies.
Getting a copy of your credit record
You can get a free copy of your credit record by applying online to the Irish Credit Bureau. For security reasons, it will be posted out to you. It will not be emailed.
Only 1 search can be conducted per application, and the ICB takes about 5 working days to process each one.
The report that the ICB issues will display a unique reference number. You may then contact the ICB to discuss your report, quoting this unique number. You cannot discuss your credit record with the ICB by phone until you have received the report.
If you wish to have inaccurate information on your credit record amended, contact the lender concerned and ask them to forward the correct information to the ICB. The ICB cannot change the information unless asked to do so by the relevant lender.
The ICB has published further information about credit ratings.
Where to apply