Credit report information becomes more sought-after
Posted at by ifydcat on category CreditBrits are increasingly checking their financial history ahead of applying for credit cards and other financial products, according to new figures.
Data gathered from Equifax indicates that applications made for its credit reports have increased by 9.6 percent throughout the first four months of this year, in comparison to the same quarter last year.
Neil Munroe, external affairs director for Equifax said: "In the current climate, the key is for consumers to be as informed as possible when making new applications for any form of credit".
He adds that although there appears to be some signs of a loosening in the strict lending criteria seen over recent months, “the reality is that lenders are still only keen to offer the best rates to the customers who appear to present the lowest risk”, in news that could interest those seeking 0% purchases deals on credit cards.
Continuing, Mr Munroe claims that those Britons who have been turned down for 0% credit cards offers or any other form of borrowing are now looking to obtain a copy of their credit report in order to find out more about the criteria that lenders use when making a borrowing decision.
Adding that a credit rating report is fast becoming a "'must have' accessory", he states that getting hold of such a document could help people to dispute data on their file which they believe may be incorrect.
Furthermore, in getting a copy of a credit history report, those who have had money management problems in the past can add a note to the file about the reasons as to why they have defaulted on credit cards and other borrowing arrangements, something that future lenders may wish to take into consider when assessing an application for credit further down the line.
Speaking in May, David Black, principal consultant of banking for Defaqto, claimed those searching for a new credit card deal should be aware that factors such as employment background and the reason for borrowing are just a number of areas lenders will take into consideration when judging a request for credit.