Everything you need to know about FCA’s plans to change your credit file on mortgages, loans and BNPL
The Financial Conduct Authority (FCA) has announced plans to close gaps in borrowers’ credit files. This move could reshape the way millions of people access loans, mortgages and other credit agreements.
The regulator has launched a consultation that will run until 1 May 2026. Once approved, the new rules will be implemented 12 months later.
For consumers, these changes could mean fewer nasty surprises when applying for credit, but it could also mean closer scrutiny of their finances and credit scores.
Here’s what’s changing, why it matters, and more importantly, what you need to do now.
What is a credit file?
Your credit file (or credit report) is a detailed six-year history of your borrowing, repayment behavior, and financial public records. Credit cards include payments for loans, mortgages, mobile contracts and utilities.
Lenders check credit files to decide whether to approve applications and what interest rate to offer.
A poor or spotty credit history could mean paying more for a loan or being rejected outright.
A credit reference agency (CRA) is an independent company regulated by the FCA that collects and holds financial information used to compile credit reports. In the UK, the three main CRAs are Experian, Equifax and TransUnion.
Eliminating gaps and errors in the credit file
There are notable inconsistencies in how information is currently reported to CRAs. Some lenders share comprehensive data, while others provide limited updates.
The FCA consultation is examining two main changes designed to make credit files more complete and accurate.
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First of all, there are suggestions regarding mandatory data sharing. The FCA wants certain lenders to be legally required to share information about consumer borrowing with designated CRAs. In simple terms, this will mean that people will have fewer gaps in their credit reports and that the reports will more accurately reflect people’s financial circumstances.
Second, the regulator is proposing stronger requirements to ensure that information shared is accurate and up-to-date.
The recommendations include ensuring that District Court Judgments (CCJs) and decisions are appropriately recorded, as well as better processes for correcting errors and resolving disputes.
Alison Walters, FCA Director of Consumer Finance, said: “Access to affordable credit relies on quality data, which is vital to helping consumers navigate their financial lives. That’s why we want to make sure everyone’s credit information is as complete and accurate as possible.”
How about Buy Now, Pay Later?
The FCA consultations also set out proposals to standardize and expand the range of information that should be shared with CRAs.
One key area is short-term and interest-free credit, including buy now pay later (BNPL) products. These deals have grown in popularity but are not always consistently reported. Under the FCA’s plans, lenders will have clearer obligations to share both positive and negative repayment data.
There are also proposals to tighten the rules on how delinquencies, delinquencies and forbearance arrangements are recorded. Currently, the same situation (for example, reaching an agreement on a temporary payment holiday) may be reported differently by different companies.
Another focus is on improving data accuracy and the speed at which it can be done. Lenders may need to update records more frequently and correct errors more quickly.
What do the changes mean for borrowers?
For many borrowers, the changes will be positive. A more complete credit file means lenders have a more comprehensive picture of someone’s financial behavior.
Peter Tutton, StepChange’s director of policy, research and public affairs, said: “High-quality credit information is crucial to supporting people to access affordable credit, essential services and to prevent debt problems. Gaps and inconsistencies in credit information often exclude some consumers and leave others unaffordable. These proposed reforms will help create consistency by ensuring information about a borrower’s credit history is shared across all CRAs.”
However, with more comprehensive data and tighter accuracy rules, lenders will be able to see borrowing patterns, repayment habits, and early signs of strain in much more detail.
This could mean affordability checks are likely to be more in-depth than they are currently.
How can you improve your credit record?
The FCA consultations do not mean any immediate changes for borrowers. But it’s always a good idea to monitor your credit score and try to improve it if it’s low.
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Your first step should be to regularly check your credit report with the main CRAs (Experian, Equifax, and TransUnion). Look for any errors, outdated information or accounts that are not yours and dispute them as necessary. Make sure you are on the electoral roll at your current address, as lenders use the electoral roll to verify your identity.
Second, treat all forms of borrowing as visible, even if they do not appear in your file. Assume that BNPL deals and other short-term products may soon be fully reported. You should avoid taking on several new commitments at the same time as this can indicate financial pressure.
Payment history remains one of the most important factors in credit scoring. Setting up automatic payments and budgeting carefully can help you protect your record.
Finally, if you are struggling with debt, contact the relevant lenders as soon as possible. While missing payments can hurt your file, proactively agreeing to a payment plan is generally viewed more favorably than ignoring the problem.
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