EQUIFAX OFFERS ADVICE TO NON-UK CITIZENS WITHOUT A UK CREDIT HISTORY
Equifax, a leading credit information provider, is offering non-UK citizens advice on how to build their credit history in this country.
The UK has universal appeal as a place to work for business professionals from all over the world, some just for short-term contracts, others as a permanent home. But expatriates may find it hard to gain credit in the UK, even though they could have a good credit record in their home country. And given that credit agreements are needed even for mobile phones, this could be a significant challenge for some non-UK citizens working in the UK.
Proving Identity - the First Step
When a lender receives a credit application, their first step is to try to verify the identity of the applicant, including their name and address. The electoral roll is an essential tool for lenders to prove the identity and address of an individual, but for some non-UK citizens this could be the first stumbling block as they are unlikely to be on the electoral roll.
Providing copies of utility bills is an acceptable alternative for many lenders when looking for name and address verification. Tenancy agreements will also provide valuable address confirmation. In addition, an expatriate can write to Equifax to request that a Notice of Correction be added to their credit file. This will alert lenders to their circumstances and confirm their residency.
Ability to Manage Credit
Once an applicant's identity has been verified, a lender will want to gain a picture of their ability to manage credit. Generally lenders do this by looking at how an individual has maintained current and previous credit agreements.
But for an expatriate without a UK credit history this may, again, be a hurdle in obtaining credit. Past bank statements and up to date utility bills help to prove that an individual can manage credit responsibly. The Notice of Correction facility can also be used to explain an individual's circumstances. In addition, Equifax advises expatriates to speak to lenders face-to-face to explain their situation and their previous credit history in their home country. For US and Canadian citizens they can apply for a copy of their credit file from Equifax's Consumer Direct service - www.equifax.com.
"It is important that expatriates realise some of the difficulties they may encounter when they apply for credit in the UK", confirmed Michael Shannon, Managing Director, Equifax Ltd. "But the most important thing to know is that there are ways for an individual to help lenders find the information they need in order to accept a credit application. For example, many high street lenders will provide face-to-face assistance, enabling an individual to explain their particular circumstances.
" Perhaps the most important thing an expatriate can do before they start applying for credit in the UK is to obtain a copy of their Credit File. This will enable them to see what information, if any, is held about them and therefore what additional information they may need to provide when applying for loans, credit cards, mobile phone agreements, and other forms of credit."
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| Provide a copy of your Credit File from your home country, if available, when making credit applications in the UK | |
| Obtain a copy of your Credit File to see what information is already held about you. | |
| Use utility bills with your name and current UK address, as an alternative to the electoral roll. | Tenancy agreements can also be used as proof of address. |
| Request a Notice of Correction to inform lenders that you have not previously been resident in the UK. You can add 250 words to your Credit File for this purpose. | Use bank statements and credit card bills from your previous country to show past financial management. |
Consumers can request a copy of their Credit File by clicking here.
Equifax will also accept written applications addressed to Equifax Ltd, Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US. Please include full details of the applicant's title, full first name, middle name, surname, and addresses at which the applicant has resided during the past six years, together with the statutory charge of £2.00.
