The Financial Conduct Authority (FCA) has unveiled plans to close gaps in borrowers’ credit files. The move could reshape how millions of people access loans, mortgages and other credit agreements.
The regulator has launched a consultation which will run until 1 May 2026. Once the new rules are confirmed, they will be implemented 12 months later.
For consumers, the changes could mean fewer nasty surprises when applying for credit – but also closer scrutiny of their finances and credit score.
Here’s what’s changing, why it matters and 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 behaviour, and financial public records. It includes payments for credit cards, loans, mortgages, mobile contracts, and utilities.
Lenders check credit files to decide whether to approve applications and what interest rate to offer.
A thin or patchy credit history can mean paying more to borrow money – or being turned down altogether.
A credit reference agency (CRA) is an independent company regulated by the FCA that gathers and holds the financial information used to compile credit reports. In the UK, the three main CRAs are Experian, Equifax and TransUnion.
Cracking down on credit file gaps and errors
At present, there are notable inconsistencies in how information is reported to CRAs. Some lenders share comprehensive data, while others provide limited updates.
The FCA consultation is looking at two main changes designed to make credit files more complete and more accurate.
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Firstly, there are proposals about 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 would mean fewer gaps in people’s credit reports, ensuring reports more accurately reflect people’s financial circumstances.
Secondly, the regulator is proposing stronger requirements to make sure the information shared is correct and up to date.
The proposals include better processes for correcting errors and resolving disputes, as well as making sure that satisfied County Court Judgments (CCJs) and decrees are properly recorded.
Alison Walters, director of consumer finance at the FCA, said: “Access to affordable credit relies on good quality data – it’s vital in helping consumers navigate their financial lives. That’s why we want to make sure everyone’s credit information is as full and accurate as possible.”
What about Buy Now, Pay Later?
The FCA consultation also sets out proposals to standardise and widen the range of information that must be shared with CRAs.
One key area is short-term and interest-free credit, including buy now pay later (BNPL) products. These agreements have surged in popularity but have not always been consistently reported. Under the FCA’s plans, lenders would have clearer obligations to share both positive and negative repayment data.
There are also proposals to tighten rules on how defaults, arrears and forbearance arrangements are recorded. At the moment, the same situation – for example, agreeing a temporary payment holiday – can be reported differently by different firms.
Another focus is improving data accuracy and the speed at which this is done. Lenders could be required 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 fuller picture of someone’s financial behaviour.
Peter Tutton, director of policy, research and public affairs at StepChange, says: “High quality credit information is crucial to support people to access affordable credit, essential services and prevent debt problems. Too often gaps and inconsistencies in credit information have excluded some consumers while leading to unaffordable lending to others. These proposed reforms will help to create consistency by ensuring information on a borrowers’ credit history is shared across all CRAs.”
However, with fuller data and tighter accuracy rules, lenders will be able to see borrowing patterns, repayment habits and early signs of strain in far greater detail.
This could mean that affordability checks are likely to become more in-depth than they are at the moment.
How to improve your credit record
The FCA consultation doesn’t mean any immediate changes for borrowers. However, it’s always a good idea to keep an eye on your credit score and to try to boost it if it’s on the low side.
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Your first step should be to check your credit report regularly with the main CRAs (Experian, Equifax and TransUnion). Look for errors, outdated information or accounts that don’t belong to you, and dispute these as necessary. Make sure you are on the electoral roll at your current address as lenders use the electoral register to verify your identity.
Secondly, treat all forms of borrowing as visible – even if they do not currently appear on your file. Assume that BNPL agreements and other short-term products may soon be reported in full. You should avoid taking on several new commitments at once, as this can suggest financial pressure.
Payment history remains one of the most significant factors in credit scoring. Setting up direct debits and budgeting carefully can help protect your record.
Finally, if you are struggling with debts, talk to the relevant lenders as soon as possible. While missed payments can damage your file, proactively agreeing a payment plan is usually viewed more favourably than ignoring the problem.
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