Adding a mental health note to your credit file

If a mental health problem led to missed payments, a default or a court judgment, you can put a short statement on your own credit report explaining what happened. It is called a notice of correction. It is free, it can be up to 200 words, and it does not change your credit score. What it does is put your side of the story in front of a lender at the moment it is deciding whether to accept you.

You add it yourself, and you have to add it separately with each of the three credit reference agencies: Experian, Equifax and TransUnion¹. The note sits alongside the entry it explains, so a lender reading a default sees your explanation at the same time.

A note is not the only option. For a mental health crisis there is a formal protection called a mental health crisis breathing space, which stops creditors contacting you for payment and stops interest and charges building up while you are in treatment³. For longer-term conditions there is a standard form, the Debt and Mental Health Evidence Form, that a health or social care professional completes for your creditors⁵.

What a mental health note on your credit file does

Your credit reference file holds factual information, which can include your payment record on some agreements¹². It also carries debts, bank accounts, loans, credit cards and other credit, bills such as mobile phones, utilities and insurances, plus county court judgments, decrees and insolvencies like bankruptcy¹. A note does not remove any of that. It adds your explanation to it.

That matters because the entries themselves are usually accurate. A credit reference agency will not remove adverse information if it is correct, although consumers may ask to submit a notice of correction to explain the circumstances¹³. So the note is not a correction of a mistake. It is a statement of context, and it is the tool the rules give you when the facts are right but the reason behind them is not on the file.

If your mental health causes you periods where you find it difficult to control your spending, you can put information on your own credit report to tell lenders about your mental health and how it affects your spending¹⁴. The same route covers a default that arose because you were unwell and unable to deal with post or phone calls.

There is a wider point about how creditors are expected to behave. The Financial Conduct Authority's Consumer Credit sourcebook requires a lender to have clear policies in place for customers who are in arrears and particularly vulnerable, and this includes customers who have mental health difficulties³. A note on your file is one way of making that situation visible at the point where a decision is made about you.

Notice of correction: up to 200 words, free to add

The notice of correction is the everyday version of a mental health note. You can ask the credit reference agency to put a notice on your report of up to 200 words explaining why you got into debt or why you think information on your report is wrong or misleading². It is free to do and can be up to 200 words⁷. The limit is set in law: the Consumer Credit Act 1974, section 159, refers to an accompanying notice of correction not exceeding 200 words drawn up by the consumer⁶.

Two hundred words is more than it sounds, but it is not a letter. The note works best when it is specific and factual: what happened, when, and what has changed since. A statement that you were unwell for a period and that payments were missed during it tells a lender more than a general remark about difficult circumstances.

The note is your own words. You do not have to name a diagnosis, and nothing in the rules requires you to. Where a formal document is used instead, the position is different: the Debt and Mental Health Evidence Form asks a professional whether the person has a mental health problem that affects their ability to manage their money¹⁵.

How to add a note with Experian, Equifax and TransUnion

There are three credit reference agencies: Experian, TransUnion and Equifax¹⁶. You will need to register a separate notice of correction with all three main UK credit reference agencies⁸. Adding it with one does not add it with the others.

You can check what is on your file first, so the note lines up with the entries it explains. This can be done through Experian, Credit Karma or Equifax¹⁷. If you suspect a county court judgment has been made against you, check your credit report with Experian, Equifax or TransUnion¹⁸. After a data breach, checking your credit report with the three main credit agencies, TransUnion, Experian and Equifax, is the way to see whether credit has been taken out in your name¹⁹.

The process in outline:

1. Get your report from each agency and identify the entries you want to explain.
2. Write your statement, keeping it within 200 words and sticking to facts and dates.
3. Send it to each agency, asking for it to be added as a notice of correction.
4. Keep a copy of what you sent and when.
5. Check later that the note is showing on each file.

If you would rather not write it alone, a debt adviser or an advice charity can help you draft it. The note still goes on your file at your request.

How lenders treat a note when you apply for credit

A notice of correction is read by a lender when it looks at your file. It does not override the lender's own rules, and it does not oblige a lender to accept you. What it does is put your circumstances in front of the person or system assessing you, at the point where the decision is made.

There is a legal backdrop that supports this. The Equality Act 2010 says that your creditors must make reasonable adjustments to help you where you have a mental health condition⁴. In mortgage arrears, the law says lenders must treat you fairly and take your circumstances into account²⁰. These duties apply whether or not you have a note on your file, but a note makes the situation harder to miss.

Where a mental health crisis moratorium is being considered, the rules go further. A debt advice provider must assess whether the debts included in the application are qualifying debts and obtain information relevant to the financial standing of the debtor from at least one credit reference agency²¹. That is a formal check, not a note, but it shows the same principle: the state of your file is part of how your situation is assessed.

In practice, a note tends to matter most where a decision is not purely automated. A lender looking at a default from two years ago, with a note explaining a period of illness and a stable record since, has more to work with than a bare entry. A lender applying a hard rule on any default in the last twelve months may not be moved by it at all.

That case is about how a firm handled calls, not about a note on a file, but it shows the standard a firm is held to when a customer's mental health is affected by how they are treated.

Where a note does not help, and other support for debt and mental health

A note of correction explains. It does not reduce what you owe, stop a creditor chasing a debt, or remove an accurate default. If the underlying problem is that the debt is unaffordable, the note is not the answer on its own.

There are stronger protections for specific situations. A mental health crisis breathing space can last for the whole time you are getting crisis treatment, plus 30 days after¹⁰. You can only apply for one if you are struggling with debts and receiving mental health crisis treatment⁹. While it is in place, creditors cannot contact you to ask for payment towards a debt that is included in your breathing space, and they cannot add interest or charges to a debt that is included⁴. It covers debts such as council tax arrears, missed utility bills, personal loans or credit cards¹⁰. The debt advice provider must request confirmation of whether you are still receiving treatment before the end of 30 days beginning with the day the moratorium started, and must not make the request in the first 20 days, then every 20 to 30 days after that²³. The debt adviser will end the breathing space if they cannot get confirmation that you are still getting crisis treatment¹⁰.

For longer-term conditions, the Debt and Mental Health Evidence Form is the recognised route. It is completed by a health and social care professional and given to creditors as evidence of how a mental health condition affects the person⁹. It helps your creditors understand any mental health issues you are going through¹⁵. A health or social care professional can complete it to forward to creditors as evidence of your condition²⁴. You can complete it with your health or social care worker²⁵, ask a health or care professional to sign it and send it to the people you owe, which lets your doctor share information about your mental health with them²⁶, or, with support from your GP, send it to the people you owe²⁷. The form is produced by the Money Advice Liaison Group and is recognised by creditors as evidence²⁸.

Where a mental health condition is long-term and there is little chance of the debt being repaid, the Good Practice Awareness Guidelines for Helping Consumers with Mental Health Conditions and Debt say creditors should consider writing off unsecured debts²⁸. Those guidelines are for helping customers with mental health conditions and debt²⁹. In cases of extreme hardship, or if there is evidence of mental health problems, HMRC can consider writing off all or part of a tax credit overpayment³⁰.

Will a mental health note lower my credit score?

No. Adding a note is not a credit search and it does not change your score. What affects your score is the information on your file. A lot of checks in a short amount of time can reduce your score¹¹, but a notice of correction is not one of those checks.

The things that do damage a file are the entries themselves. Making reduced payments towards a debt can impact your credit file, and this could make it hard for you to take out more credit³². Information such as missed payments, default notices and court judgments will generally stay on your credit file for six years⁹. A debt relief order stays on your credit file for six years from the approval date³³.

There is a wider context worth knowing. Statistics show that having poor mental health can impact on your ability to manage your finances³⁴. That is the situation the note exists to explain, and it is why the note is treated as context rather than as a mark against you.

Can someone else add a note to my credit file for me?

The request comes from you. In practice that means you ask the agency to add the note, and you do it with each agency separately⁸. Someone else can help you write it, and a health or social care professional can provide evidence to your creditors, but the note on your file is yours.

There are related notes that others can prompt. Some creditors may also ask for a note to be put on your credit reference file to say you are on a debt management plan³⁵. You can add a note to say why you did not pay a debt or that you are in dispute with a creditor about a debt³⁶. Experian's own guidance suggests asking it to add a note to your credit report to help lenders understand why you got into debt, for example redundancy or long-term illness³⁷.

One thing that does not happen: helping someone with their debts does not affect your credit rating³⁸. So if you are supporting a family member through a difficult period, that support does not land on your own file.

How long does a notice of correction stay on my credit report?

The note stays while the entry it explains is still on your file. Missed payments, default notices and court judgments generally stay on your credit file for six years⁹. A debt relief order stays on your credit file for six years from the approval date³³. Once the underlying entry drops off, there is nothing left for the note to explain.

You can change or remove the note before then. Because you register it separately with each agency, a change has to be made with each one⁸. If an agency refuses to add or amend your note, you can ask it to explain its decision and take the matter further.

Do I have to give details of my diagnosis in the note?

No. The note is your own words, up to 200 words, and you decide what goes in it⁶. Nothing in the rules requires a diagnosis to be named.

Where a formal document is used instead, the position is different. A mental health crisis moratorium application must include sufficient information to identify the debtor and evidence from an approved mental health professional that the debtor is receiving mental health crisis treatment³¹. The Debt and Mental Health Evidence Form asks a professional whether the person has a mental health problem that affects their ability to manage their money¹⁵.

Separately, and outside credit files, some products do require disclosure. Diagnosed medical conditions of any kind need to be disclosed to your insurance provider, and this includes health conditions relating to your mental health³⁹. That is a rule about insurance, not about your credit report.

What is the Debt and Mental Health Evidence Form?

It is a standard form produced by the Money Advice Liaison Group and recognised by creditors as evidence that a mental health condition affects how you manage money²⁸. A health or social care professional completes it and you send it to the people you owe⁹.

It is used where a note of correction is not enough, for example when you are asking a creditor to change how it deals with you, to hold action, or to consider writing off a debt. The form is available with instructions from the advice sector⁴⁰. With support from your GP, you can send one to the people you owe²⁷.

Can I get breathing space from creditors during a mental health crisis?

Yes, if you are struggling with debts and receiving mental health crisis treatment⁹. A mental health crisis moratorium is defined in law as a moratorium for a debtor receiving mental health crisis treatment, including detention under sections 2, 3, 4, 35, 36, 37, 38, 45A, 47 or 48 of the Mental Health Act 1983, removal to a place of safety under sections 135 or 136, or other crisis, emergency or acute care from a specialist mental health service²³.

It lasts for the whole time you are getting crisis treatment, plus 30 days after¹⁰. While it is in place, creditors cannot contact you to ask for payment towards a debt that is included in your breathing space, and they cannot add interest or charges to a debt that is included⁴. It covers debts such as council tax arrears, missed utility bills, personal loans or credit cards¹⁰.

The application is made through a debt advice provider. Once it is granted, the provider must provide confirmation and information to the Secretary of State, who must by the end of the following business day cause an entry to be made on the register and notify the nominated point of contact and creditors and agents³¹. A debt respite form is a document to prove you are receiving mental health treatment¹⁰.

Where to get free help

Free, impartial help is available and does not cost anything. National Debtline and StepChange both publish guidance on debt and mental health, including how to use the Debt and Mental Health Evidence Form and how to ask creditors to treat you fairly⁵. The Money and Mental Health Policy Institute's Money and Mental Health Advice service covers credit and mental health¹⁴.

If a firm has treated you badly, you can complain to it first and then take the complaint to the Financial Ombudsman Service, which publishes case studies on how distress caused by a firm's handling of a debt has been assessed²². Guidance on complaining about your lender is available from Business Debtline²⁹.

The Financial Services Compensation Scheme also publishes mental health support information for customers of firms that have failed³⁴. If you are behind on a mortgage or rent, Shelter's guidance covers breathing space and mental health crisis¹⁰, and NI Direct covers mortgage arrears and payment difficulties in Northern Ireland²⁰.

One caution about the wider system: the personal insolvency framework is not effective enough in supporting financial resilience, with factors such as stigma, financial restrictions and credit reporting undermining recovery⁴². That is a policy criticism, not a rule, but it is a fair warning that a note on your file is a small tool in a larger system.