How far back do lenders look at your credit history?

Lenders usually look back six years when checking your credit history. This is important to know if you're planning to apply for a loan, credit card or mortgage. Taking time to look at your credit report before you apply can help you spot and fix any issues, improving your chances of approval.

What is credit history and why does it matter?

Your credit history shows how well you've managed your money over the last six years. It's like a financial timeline that tells your money story. It includes:

• Bank accounts you've opened and closed
• How much money you've borrowed
• Any missed or late payments
• Serious money problems (like defaults, CCJs, or bankruptcies)
• Recent applications for loans or credit cards

Your credit history is really important because it affects your credit score. A good credit score helps you borrow money more easily and get better interest rates on loans, credit cards and mortgages.

What else do lenders look at?

Your credit report is just one piece of the puzzle. Lenders also look at several other important factors:

• Your income: They want to know if you earn enough to repay what you borrow. They’ll probably ask for payslips or bank statements as proof.
• Your spending habits: Lenders check your regular outgoings, including bills, rent or mortgage payments, and other financial commitments. This helps them see if you can afford new repayments.
• Your debt-to-income ratio: This compares how much debt you have with how much you earn. Lower ratios are better and show you're not stretching your finances too thin.
• Address stability: Living at the same address for a longer time suggests stability, which lenders like to see. Frequent moves might raise questions.
• Employment history: A steady job history is reassuring to lenders. Changing jobs often could make them more cautious.
• Your deposit: For larger loans like mortgages, having a bigger deposit reduces the lender's risk and might help you get better rates.

All these factors together help lenders decide if lending to you is a safe choice for them.

How far back do mortgage lenders look?

When you apply for a mortgage, the lender will check your credit history. Just like other lenders, they can only see the last six years.

Mortgage lenders tend to be more thorough than other lenders because they're considering lending you a large sum of money over many years. They'll pay special attention to:

• How you've managed other large loans
• Any recent applications for credit (too many can be a red flag)
• Your credit utilisation (how much of your available credit you're using)
• How stable your address and employment history are

Getting a mortgage is often the biggest financial commitment you'll make, so lenders want to be extra careful. Most mortgage lenders prefer to see at least three years of good credit history with no serious problems.

Before you apply for a mortgage, take time to check your credit report. If you spot any mistakes, contact the credit reference agency or your lender right away to get them fixed. This will help boost your score and improve your chances of getting approved.

How far back do mortgage lenders look at bank statements?

Mortgage lenders usually ask to see the last three to six months of your bank statements when assessing your mortgage application. They do this to check:

• Your income – ensuring you have a stable and sufficient income to cover your mortgage payments.
• Spending habits – looking at your regular outgoings, bills, and discretionary spending.
• Savings and deposits – confirming you have the funds for your deposit and associated home-buying costs.
• Debt repayments – checking if you’re managing existing debts responsibly.
• Financial stability – identifying any red flags like gambling transactions, frequent overdraft use, or unpaid Direct Debits.

Some lenders may request more than six months of statements, particularly if you're self-employed, have irregular income, or are applying for a high loan-to-value (LTV) mortgage.

Before applying, review your bank statements and try to minimise unnecessary spending, avoid overdrafts, and ensure all payments go out on time. This will help present your finances in the best possible light.

How long does a default stay on your credit file?

First, what exactly is a default? A default happens when a lender decides you've broken the terms of your credit agreement because you've missed several payments. It's a serious mark on your credit file that tells other lenders you've had trouble paying back money in the past.

A default stays on your credit file for six years from when it was recorded. A lender might add a default if you've missed three to six payments.

Even if you pay off the debt completely, the default will still show on your report until the six years are up. This could make it harder to borrow money during this time.

Can you still get credit with a default?

Getting approved for loans or credit cards can be tricky if you have a default on your credit report. Lenders might think you're risky if you've missed payments before.

Some special lenders may still give you credit, but they usually charge higher interest rates. You might want to work on improving your credit score first to get a better deal.

Here are some things that could help if you have a default:

• Pay off the debt as soon as you can so it shows as 'satisfied' on your report
• Work on improving your credit score by always paying bills on time
• Add a note to your credit report explaining what happened (like losing your job or being ill)
• Give it time - the longer since your default, the less it matters, especially if you've been making all your payments

How do I fix mistakes on my credit report?

If you find a mistake on your credit report (like a wrong default), contact your lender and the credit reference agency straight away.

You'll need to explain what's wrong, and you might need to provide proof. The credit reference agency will then talk to the lender before they can remove anything from your report, but they can add a note saying there's a dispute while they sort it out.

Why is a long credit history important?

Having little or no credit history can make it hard to get approved for loans. Just like a new friend, lenders don't know much about you yet!

Without information on how you've handled money in the past, lenders can't tell if lending to you is risky. Most lenders prefer to see some credit history, even if it's just a mobile phone contract or a basic credit card that you've managed well.

Quick tips: improve your credit history

Here are some practical ways to improve your credit history:

• Check your credit report regularly (once a month is recommended) with all three main UK credit reference agencies: Experian, Equifax and TransUnion
• Register to vote – being on the electoral roll helps lenders confirm your identity
• Pay all your bills on time – set up Direct Debits so you never forget
• Stay well below your credit limits – try to use less than 30% of your available credit
• Keep old, well-managed accounts open – they show a longer history of good management
• Space out credit applications – making too many in a short time can look desperate
• Fix any mistakes on your report quickly – contact the credit reference agency if you spot errors
• Consider a credit-builder product if you have a thin credit history

Remember that improving your credit history takes time – there's no quick fix. But small, consistent actions can make a big difference over the six-year period that lenders can see.