Press Release

MISSED MOBILE PHONE PAYMENTS WILL MAKE A DIFFERENCE TO CREDIT SCORES

Equifax warns of the impact of late payments on applications for new credit

www.equifax.co.uk

London, February 17th 2009 - Leading instant online credit information provider, Equifax, is warning consumers to stay on top of all their credit agreements following a recent survey*of its customers which revealed that over 60% would be prepared to miss a monthly payment on their mobile phone bill thinking it would have the least effect on their credit status. But, as Equifax External Affairs Director, Neil Munroe explains, in the current credit-scarce climate this is unlikely to be the case.

"Unfortunately, the reality is that right now lenders are being extremely cautious about to whom they extend new credit and this means virtually any blip on a consumer's credit status could count against them on a new application. Making the decision to let one month's payment go on a mobile phone agreement could be just as damaging to an individual's credit status as missing a mortgage payment.

"It's also crucial that consumers remember to make any final payments, particularly on things like mobile phone contracts when changing to a new provider. We have heard of cases where an unpaid exit fee on a mobile phone agreement has meant an individual has been unable to get new credit or store cards or negotiate the best possible rate on a mortgage.

"Lenders - and that includes mobile phone companies providing long term usage contracts - will be looking in more detail at the full picture of a consumer's credit behaviour. So whatever type of credit agreement you have taken out - even if it's only for a small amount of money - make sure the account is paid on time and settled in full if you want to be able to access new credit."

Equifax also advises consumers to obtain a copy of their credit report, both before they start shopping around for new credit and after they have completed the process. This will enable them to check that the information held on them is up-to-date and that their credit rating is looking as good as possible for future credit applications. If an individual's application is declined they should ask the lender why. If the lender says it's because of information supplied by a credit reference agency, they should stop applying for further credit and check their credit file for any adverse information that may be affecting their ability to gain credit.

To make this as easy as possible, Equifax has launched a new service which gives consumers access to their Equifax Credit Report for 30 days for free. The new Equifax Credit Report, with the facility to access credit information for the first 30 days free, is accessible simply by logging onto www.equifax.co.uk. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life's challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

ENDS

*Survey conducted December 2008 amongst 675 Equifax customers

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: elinor@harrisonsadler.com