Credit Agreement

What is a Credit Agreement?

A Credit Agreement is a legal contract issued by a lender which sets out the terms of extending credit to customers for a specified amount of time credit, in accordance with strict requirements of the Consumer Credit Act 1974. The Credit Agreement outlines all the rules and regulations associated with the contract. This includes the interest that must be paid on the loan and when and how it is to be repaid.

The agreement documents themselves can be lengthy and detailed, but it is essential to read the terms and conditions before signing. For the most part, all types of loans (ranging from Credit Cards to Mortgages ) have some sort of Credit Agreement, which must be signed and agreed upon by both the bank or lender and the customer - the contract does not come into effect until the document has been signed by both parties and under current law is always subject to a Cooling Off Period.


Q: Can a credit agreement be cancelled?

A: You might be able to pay off any remainder of the loan to end it early, depending on the terms of the agreement. Some will charge an an additional fee for doing this , but if you decide you no longer want or need a loan within a 14 day period of taking out the loan, you may be granted a grace period that allows you to return the money borrowed and cancel the loan.

Q: Where can I find a copy of my credit agreement?

A: If you cannot find your copy of the original agreement, the lender should be able to provide you with a copy.

To find out more details about the credit account, your checkmyfile Credit Report likely holds the key, as it contains information about the name of the lender, the amount borrowed, any outstanding amount, the date the agreement was taken out and which Credit Reference Agencies are reporting it.

If you haven’t already, you can try checkmyfile FREE for 30 days , then for just £14.99 a month afterwards, which you can cancel online at any time.

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