People 'looking for credit report data'
Brits are increasingly checking their financial history ahead of applying for credit cards and other financial products, according to new figures.
Research carried out by Equifax reveals that requests made for its credit reports rose by some 9.6 per cent during the first quarter of this year, in comparison to the same period of time in 2008.
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 financial rating report is quickly becoming a must have accessory, he states that through obtaining such a document, people are able to challenge any data on their file which they believe to 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, principal consultant of banking for Defaqto, David Black, claimed that people seeking credit card deals should understand that factors such as the reasoning behind borrowing and employment background are just a couple of things lenders will look into when deciding whether to approve or reject credit.
