A credit file is a collection of information obtained from credit card providers, banks, mortgage providers and utility service providers. The financial information in your file is used by lenders to assess your ability to repay debt and manage loans.
Lenders and service providers look at credit files to avoid the risk of giving credit to known defaulters or people with bankruptcy or insolvency issues, or, if they are offering credit to those borrowers, they may usually charge a higher rate.
