What are credit reference agencies (CRAs)?

Credit reference agencies (CRAs) are independent third-party firms that collect and store information from providers of financial services about how an individual uses and manages their products. This includes details about how much credit someone owes, when it was taken out, and whether or not payments have been made on time. They also hold personal identifying information such as name, date of birth, address details, and details of any other individuals you are financially connected to, such as a spouse or partner.  

This information is all compiled together in one place by the agencies and used to provide credit references (or reports) to financial service providers and to generate credit ratings (or scores), to use as indicators of the creditworthiness of an individual.