COULD SUMMER HOLS HIT CONSUMERS CREDIT SCORES THIS WINTER?
London 31st July 2007 – With the average Brit taking four holidays a year and spending almost £2,000 on a family break*, Equifax, the instant online credit information provider, is warning that consumers need to be careful that they aren’t still paying for their summer holiday well into the winter – hitting their credit rating.
A survey conducted by Equifax** revealed that credit would be used by 51% of those planning a major holiday, with 70% of those intending to use their existing credit cards. And whilst 57% said that they would pay off the credit within a year, 29% said it could take them up to 3 years to clear the debt. Equifax believes this could have a serious impact on their finances – and their credit score.
“With rising interest rates and a general increase in the cost of living it is inevitable that consumers will look to credit to fund big expenses, like the summer holiday” confirmed Neil Munroe, External Affairs Director, Equifax. “But we believe it’s crucial for consumers to understand the impact of taking a long time to pay off that credit. By only paying off the minimum amount each month, holidaymakers could still be paying for the summer sun well into the gloomy days of winter. And if they intend to use credit for other major purchases later in the year they may find that lenders don’t give them the best rate because they already have a high level of credit outstanding.”
Equifax advises that consumers should shop around to ensure they get the best deal – on the holiday itself and on the credit to fund it. With an abundance of price comparison and travel websites around there is always a deal to be had. It is also worth checking out cashback websites who offer great deals when booking holidays.
“Of course, booking on a credit card can provide protection should things go wrong and may also offer extras such as travel insurance” concluded Neil Munroe. “And if applying for a new credit card to help with the cost of the break, I would advise consumers to gain a copy of their credit file to ensure they are offered the best deals and cards. But the key is to make sure you have a clear plan for paying off the credit in a relatively short time-scale after the holiday is over.”
To get a clear picture of all their finances Equifax recommends that consumers get a copy of their Equifax Credit Rating. This can be done instantly online at www.equifax.co.uk.
*www.fool.co.uk
** Equifax survey – 1400 responses
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Notes to Editors
For further press information please contact: Claire Foster, Kate Clements or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email claire@harrisonsadler.com
About Equifax
Equifax Inc. is a global leader in information technology that enables and secures global commerce with consumers and businesses. We are one of the largest sources of consumer and commercial data. Utilizing our databases, advanced analytics and proprietary enabling technology, we provide real-time answers for our customers. This innovative ability to transform information into intelligence is valued by customers across a wide range of industries and markets. Headquartered in Atlanta, Georgia, Equifax employs approximately 4,600 people in 13 countries throughout North America, Latin America and Europe. Equifax was founded 107 years ago, and today is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX. .
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