Why do we have Credit Reference Agencies?
In the UK we have a highly developed credit referencing system that gives people access to affordable credit, in the most efficient way possible.
CRAs provide information to organisations to help them decide whether to lend you money or give you goods or services on credit.
- Without CRAs, companies would need to collect information about how you've managed credit in the past and other publicly-available information about you themselves every time you made a credit application
- That would make it a very long, slow process and increase the likelihood of decisions being made without all the necessary information as well as heightening the risk of fraud