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.

Equifax carried out research around report requests which shows that applications have increased by 9.6% over the first quarter of 2009, in comparison to the same period in 2008.

External affairs director for Equifax - Neil Munroe, 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, David Black, principal consultant of banking for Defaqto, said that lenders will take a number of factors into consideration when judging whether or not to approve credit, such as employment background and reasons behind requiring credit.