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FACT OR FICTION?

MyEquifax Dispels the Myths of Consumer Credit
www.myequifax.co.uk

MyEquifax, the instant online credit information provider, warns that despite the growth in the availability of credit, many consumers are still confused by the whole credit application process. In particular, very few consumers can identify which factors lenders consider when making credit decisions. My Equifax believes that, as credit has become such an integral part of everyday life it is vital that consumers understand more about the industry and take advantage of what is available.

Neil Munroe, External Affairs Director of Equifax comments, "It is important that consumers distinguish the truths about the credit industry from the myths. Consumers may be at risk from damaging their credit rating and missing out on the best finance deals available."

Common Credit Myths

  1. "I have been blacklisted"
    Contrary to popular belief there is no such thing as a blacklist. If you are having problems obtaining credit it could well be because of your credit rating, not because you have been blacklisted.
  2. "The more credit cards I apply for the better my credit rating will be"
    If you apply for too many credit agreements in a short period of time lenders may interpret this as over-stretching yourself financially and you may be declined credit as a result. More than one or two applications in six months may be looked at unfavourably.
  3. "I don't know what information is on my credit report and I don't have access to it"
    Everyone is entitled to see what information is held on his or her credit file. You can get a copy of your Equifax Credit Report instantly online from www.myequifax.co.uk for £11.95. Alternatively you can apply online for a copy of your £2 statutory credit file or you can write to Equifax Plc, Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US.
  4. "The Credit Reference Agency rejected my loan application"
    Credit Reference Agencies do not grant or refuse credit applications, it is the lender/creditor who decides this. Credit Reference Agencies simply provide the information on which lenders base their decision.
  5. "My credit history is being looked at without my consent"
    Every time you apply for a credit card, mail order products, a loan, a finance agreement or a mortgage you are informed that the company will look at your credit file. Your information is completely secure and only you and the companies you give permission to can view it.
  6. "My post code is affecting my credit history"
    Where you live does not affect your credit history. If you live in an area that has a generally poor credit rating this will not affect your own credit rating. However, people living in the same area often have similar credit ratings because their lifestyles and financial positions are similar.
  7. "Can I add an explanation on my credit report to explain why I have had credit problems?"
    Yes. If you have incurred defaults and are struggling with debt after a redundancy or divorce you can add a "Notice of Correction" on your file that allows you to explain your circumstances to the lender.
  8. "Missed payments don't show on your credit file after a year"
    Not true. Don't be complacent with missed payments, they will stay on your file for six years and are looked at unfavourably by lenders.
  9. "If I don't pay my utility bills this won't affect my credit history"
    This is incorrect. An unpaid utility bill can affect your Equifax Credit Rating and result in a County Court Judgment.
  10. "A credit repair agency will be able to sort out my credit file"
    The best person to improve your file is you. The first step is to obtain a copy of your credit file, then correct any mistakes on your file and add a Notice of Correction if appropriate. Keeping up with repayments and registering on the Electoral Roll are important factors that can potentially improve your credit rating. Credit Repair Agencies do not have the solution.
  11. "My husband and I are divorced now, so his credit status won't affect mine anymore"
    If you have had a joint finance agreement with a partner, sibling, friend or dependent they may affect your credit rating. If you do not want this you can place a "Notice of Disassociation" on your file. Similar to a Notice of Correction, this will explain to lenders that you are no longer associated with that person. This can only be done once the joint account that financially links you has been settled.

For just £14.95 consumers can obtain a copy of their Equifax Credit Rating, which includes their Credit Report, instantly, online at www.myequifax.co.uk

If you are looking for commentary on this subject, Equifax can provide consumer credit information experts who have extensive experience on this issue.

ENDS