Credit Score Basics > Does a CIFAS marker affect credit score?

Does a CIFAS marker affect credit score?

Wollit Team3 minute read · Updated 14th October 2024

A CIFAS marker is a note placed on your credit report by CIFAS if a financial institution suspects fraudulent activity.

When a financial institution identifies suspicious behaviour or fraudulent activity, it can report this to CIFAS, which then determines whether a marker should be placed on your credit report.

This process helps protect both lenders from potential losses due to fraud but also your own credit history, if someone has stolen your identity.

This marker basically warns other lenders and financial institutions that they should run additional checks when lending to you, for various reasons.

However, in some cases a CIFAS marker can also be placed without your request. If this happens, it can seriously impact your ability to get a loan or even a job (for example in the finance industry).

What is CIFAS?

CIFAS stands for “Credit Industry Fraud Avoidance System” is a non-profit dedicated to preventing and combating fraud in the UK by maintaining a database of fraudulent activities reported by its member organisations. These include banks, insurers, and other financial firms.

How many kinds of CIFAS markers are there?

CIFAS has 8 kinds of markers, each for a different reason and lasting a different amount of time. Here they are:

Protective Registration: This marker is for people who believe they are at risk of fraud. It lasts for two years and you can request one for a small fee.
Victim of Impersonation: This is placed when an individual has been a victim of identity fraud.
First-party Fraud: This marker is applied when you have used goods or services but not paid for them.
Facility Takeover: This happens when someone takes control of another person's bank account for unauthorised transactions.
Misuse of Facility: This marker is used when an account is opened with the intent to commit fraud.
Asset Conversion: This marker applies when someone sells goods they do not own.
Application Fraud: This marker is placed when you lie in a credit application.
Insurance Claims Fraud: This marker is used when you give incorrect information during an insurance claim.

How long can CIFAS markers stay on my credit report?

Most CIFAS markers stay on your credit report for up to six years, although some markers, like Protective Registration and Victim of Impersonation, are shorter: 24 months for Protective Registration and 13 months for Victim of Impersonation.

How do I check if I have a CIFAS marker?

You might not know this, but it’s actually possible to have a CIFAS marker without knowing. Often people discover they have one only when they apply for credit and are denied.

There are only three ways to check if you have a CIFAS marker:

If you applied for a loan and got refused, ask the lender why. They’re not legally obligated to tell you if you have a marker, though.
If the marker is related to being a victim of fraud (for example, Victim of Impersonation or Protective Registration), it may be visible on the credit report and you can see it yourself.
For other types of markers, you need to submit a DSAR (Data Subject Access Request) to CIFAS. They will have to give you information about any markers placed against you.

Does having a CIFAS marker affect my credit score?

No, a CIFAS marker does not directly affect your credit score.

However, it will affect your ability to get a loan. Here is how it works:

Lenders look more closely at any credit application where there is a CIFAS marker. Because of this, it may take longer for your application to be approved.
For any marker except Victim of Impersonation or Protective Marker, lenders will view it as an indicator of high risk. If you have any of the other markers, you might find it difficult to get loans, mortgages, or credit cards.
A CIFAS marker can hinder job prospects or lead to termination if not disclosed during hiring, especially in the financial industry.
Insurance companies may also check for CIFAS markers, which can lead to higher premiums.
Depending on the type of marker, banks may even close your account or limit your service, further complicating your situation.

How do I remove a CIFAS marker?

Removing a CIFAS marker can be difficult but not impossible. Here is what you can do:

If the marker is voluntary, for example you purchased a Protective Marker yourself, you can simply ask CIFAS to remove it.
For any other kind of marker, submit a DSAR with CIFAS to understand if you have a marker, what kind of marker it is, and the reason behind it.
Get in touch with the organisation that issued it to discuss the marker and request removal
If they do not agree, request a review from CIFAS.
If all efforts fail and you still believe that the marker is unjustified, you might need to hire specialised legal help.

Does removing a CIFAS marker improve my credit score?

Like we said, CIFAS markers do not affect your credit score either way. They can make your life more difficult when it comes to getting approved for loans or credit but your credit score will stay the same.

To improve your credit score, the most important thing you can do is work on your credit history. The good news is that now there are many apps that can help you build and improve credit. One such app is Wollit.

Wollit works by reporting a fixed-fee monthly subscription as a loan repayment to all credit reference agencies. This helps you build a history of timely debt repayments, which is the main factor that matters for your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders you pay your bills on time, helping you reduce the impact of a single CIFAS marker in your overall credit file.