Search: Improve your credit rating
- Check your credit hasn't been tampered with
- Tips on avoiding identity theft
Following news from CIFAS, the UK's Fraud Prevention Service, that more people are lying on application forms to obtain credit, Equifax, the leading instant online credit information provider, is warning that even a white lie could come back to haunt a consumer.
According to CIFAS more than 64% of frauds involved the applicant trying to hide a poor credit history - not realising that the lender will check this.
Neil Munroe, External Affairs Director, Equifax, warns that this could have serious implications in the future: "When times are tough, there is a temptation to manipulate the information on an application form, but it will get found out.
Lenders look at the number of searches conducted by consumers as part of the credit assessment process and a number of searches in a short space of time would impact on a consumer's score. But more significantly, if a lender felt the information provided could be deemed as fraud and decided to prosecute, this would show on an individual's credit file and could seriously affect their ability to get credit in the future."e;
Honesty's the best policy
The advice is to be completely honest on an application. If there have been missed payments on previous credit agreements it's always worth explaining these to the lender when making the application.
And there's the facility to provide information about this on the credit file as part of our Notice of Correction service. This enables an individual to add an explanation of circumstances that may be adversely affecting their ability to obtain credit.
Equifax's Top Tips for Improving Credit Ratings & Good Credit Management
• Make sure you are registered on the Electoral Roll – this is an essential way for lenders to verify an applicant's identity and prevent ID fraud
• Be aware of searches on your credit file when shopping around and how it can affect your credit rating
• Close old credit card accounts – even they show a zero balance lenders will look at the potential credit available when assessing applications.
• Aim to pay off more than the minimum each month otherwise it could take years to pay off the debt and you will incur huge amounts of interest
• Set up Direct Debit payments for loan repayments to avoid costly late payment charges
• Get a copy of your credit file before you start applying for new loans - then you will see the information a lender sees when they assess your application
Fight the scamsters: To view your personal credit information that lenders are currently basing their credit decisions on, apply now for a free online credit report. Click here for a free 30-day trial and a free copy of your Experian credit report
