Credit Account Data

Credit account data is the most commonly used data to confirm a persons identity. Verification of a persons identity using credit account information relies on previous due diligence performed by a financial organisation to prove that an account is real. The accounts used are active credit accounts, where active is considered so because there is an active balance. Due to the reliance on a third parties due-diligence process particular attention is given to the type of credit account. Some types of credit account are considered as good sources, bank accounts or mortgages, whilst others are considered as less reliable, such as short term loans. The rules as to which accounts are accepted for identity verification are usually dictated by the credit reference agency who provides the information. 

How can credit account data be used to verify identity?

Credit account data can be used to verify a person’s identity in a number of ways. One common method is to use credit reports and credit scores to confirm that a person is who they claim to be. Credit reports and credit scores are generated by credit bureaus, which collect and maintain information about a person’s credit history, including their borrowing and repayment activity. Credit reports and credit scores are often used by lenders, landlords, and other organizations to assess a person’s creditworthiness and financial stability.

Another way credit account data can be used to verify identity is through the use of credit checks. A credit check is a process in which a lender, employer, or other organization requests access to a person’s credit report in order to verify their identity and assess their creditworthiness. Credit checks are often used when a person applies for a loan, credit card, mortgage, or rental property, as well as when they apply for a job or other type of professional opportunity.

In addition to credit reports and credit checks, credit account data can also be used to verify identity through the use of identity verification services. These services use a variety of data sources, including credit data, to confirm a person’s identity and ensure that they are who they claim to be. Identity verification services are often used by banks, financial institutions, and other organizations that need to confirm a person’s identity before conducting financial transactions or granting access to sensitive information.

It’s important to note that while credit account data can be useful for verifying identity, it is not a foolproof method and should not be relied upon exclusively. Other methods, such as verifying government-issued identification documents or biometric data, may also be necessary in order to confirm a person’s identity.

Credit Report Data

A credit report is a detailed record of a person’s credit history, including information about their borrowing and repayment activity. Credit reports are generated by credit bureaus, which collect and maintain information about a person’s credit history from a variety of sources, including banks, credit card companies, and other financial institutions.

Here are some of the types of information that may be included in a credit report:

  1. Personal identification information: This includes a person’s name, current and previous addresses, date of birth, and social security number.
  2. Credit accounts: This includes a list of the credit accounts a person has had in the past, including credit cards, loans, and mortgages. The credit report will also show the account balance, credit limit, and payment history for each account.
  3. Payment history: This includes a record of whether a person has made their payments on time, as well as any late payments or missed payments.
  4. Credit enquiries: This includes a record of any time a person’s credit report has been accessed by a lender or other organization, such as when they applied for a loan or credit card.
  5. Public records: This includes information about bankruptcies, foreclosures, and other legal actions that may have an impact on a person’s creditworthiness.

It’s important to note that credit reports do not include information about a person’s income, employment history, or savings. Credit reports are used by lenders, landlords, and other organisations to assess a person’s creditworthiness and financial stability, but they are not the only factor that these organisations consider when making decisions about credit applications or other financial matters.

Credit Reference Agencies

In the UK there are 3 credit reference agencies, who provide credit active account information for identity verification. 

Experian

Experian is one of the three major credit bureaus in the United Kingdom, along with Equifax and TransUnion. Credit bureaus are companies that collect and maintain information about a person’s credit history, including their borrowing and repayment activity. This information is used to generate credit reports and credit scores, which are used by lenders, landlords, and other organizations to assess a person’s creditworthiness and financial stability.

Experian is headquartered in Dublin, Ireland, and operates in over 30 countries around the world. In addition to providing credit reports and credit scores, Experian also offers a range of financial services and products, including credit monitoring, identity protection, and debt management. Experian is known for its high-quality credit reporting and financial services, and is widely respected and trusted by consumers and businesses alike.

Equifax

Equifax is one of the three major credit bureaus in the United Kingdom, along with Experian and TransUnion. Credit bureaus are companies that collect and maintain information about a person’s credit history, including their borrowing and repayment activity. This information is used to generate credit reports and credit scores, which are used by lenders, landlords, and other organizations to assess a person’s creditworthiness and financial stability.

Equifax is headquartered in Atlanta, Georgia, and operates in over 24 countries around the world. In addition to providing credit reports and credit scores, Equifax also offers a range of financial services and products, including credit monitoring, identity protection, and debt management. Equifax is known for its high-quality credit reporting and financial services, and is widely respected and trusted by consumers and businesses alike.

TransUnion

TransUnion, formerly CallCredit, is one of the three major credit bureaus in the United Kingdom, along with Equifax and Experian. Credit bureaus are companies that collect and maintain information about a person’s credit history, including their borrowing and repayment activity. This information is used to generate credit reports and credit scores, which are used by lenders, landlords, and other organizations to assess a person’s creditworthiness and financial stability.

TransUnion is headquartered in Chicago, Illinois, and operates in over 30 countries around the world. In addition to providing credit reports and credit scores, TransUnion also offers a range of financial services and products, including credit monitoring, identity protection, and debt management. TransUnion is known for its high-quality credit reporting and financial services, and is widely respected and trusted by consumers and businesses alike.