People ‘on search for credit report information’
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 shows that applications made for its credit reports increased by 9.6% over the first quarter of 2009, in comparison to the same period in 2008.
"In the current climate, the key is for consumers to be as informed as possible when making new applications for any form of credit," states Neil Munroe, external affairs director for Equifax.
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, If you have damaged your credit rating in the past due to defaulting on credit cards/loans, or any other reason, by getting a copy of your credit history report you can add a note to it regarding the reasons behind your issues, giving future lenders your side to the story so they can take this into consideration 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.