A credit reference agency holds details of an individual’s credit history at their current and previous address. Here’s how (and why) they do this:

Local authorities, courts, and credit providers share information with credit reference agencies for the purpose of promoting responsible lending, supporting debt recovery, and to prevent over-indebtedness (the risk of a customer being in too much debt) as well as fraud.

For example, when you make an application for credit, the credit provider will approach a credit reference agency (or maybe more) for information about your history with credit, to help them check you are who you say you are and to help them make a fair and responsible lending decision.