Over six in ten, meanwhile, think the credit histories of their family and friends can affect their credit rating – despite the fact that this only happens when people share a bank account or loan arrangement.

The Experian study, which aims to set right popular misconceptions about the way credit ratings are drawn up and distributed to lenders, found a third of Britons have been refused a loan, but four in ten do not know why.

It advises borrowers that the credit report provides information on credit cards, loans and mortgages, including details of missed repayments for 36 months afterwards.

Bankruptcies show up on a credit rating for at least six years, while multiple loan or credit applications are also visible.

Financial advisers recommend that individuals obtain a copy of their own credit rating regularly.

“Knowing your credit rating, understanding what it means and what will impact your credit score is a key part of financial management”, commented the managing director of CreditExpert.co.uk,Jim Hodgkins.

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