101 things you were afraid to ask about money

The existence of a "credit blacklist" containing the names of people who have fallen out of favour with lenders, is one of the most persistent myths of the money world.

It creates the idea of a financial version of an ASBO, barring blacklisted people from getting mortgages, credit cards and personal loans.

Like many myths, it might not be literally accurate, but then again, it might hold a grain of truth.

Redcar and Cleveland council is warning residents that non-payment of council tax could lead to court action, but because it's not a county court action, "your name will not go on a credit blacklist".

So can you be put on something that doesn't exist? The official line is there is no list of people who, because of unpaid debts or fecklessness, are blacklisted from borrowing. Every case is judged individually on its merits.

But there are lists showing an account of all our borrowing, held by two companies, Experian and Equifax. These files, which would reveal missed payments, are checked whenever we apply for credit.

These credit references are only part of the decision, along with factors such as how long someone has been in their job, or whether they are home owners. Nonetheless, the credit history, showing whether someone has been a responsible borrower, is important.

And these credit references can contain information that is disputed. There have been stories of tiny amounts of unpaid money causing headaches for would-be borrowers. But anyone can see their own file for £2, and if there is a disagreement over the contents, this can be flagged up.

There might not be a blacklist, but that doesn't mean that everyone is welcome. It's a bit like saying no one is barred, it's just some people can't come in. The government's drive to reduce financial exclusion showed that one in 12 households are without any banking facilities.

These "unbanked" are mostly pensioners or living on benefits, living in rented accommodation. They might not be on a blacklist, but they're not exactly on the credit guest list either.