Consumers 'on search for credit report data'

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Brits are increasingly checking their financial history ahead of applying for credit cards and other financial products, according to new figures.

Data gathered from Equifax indicates that applications made for its credit reports have increased by 9.6% during the first quarter of 2009, in comparison to the same period last year.

Neil Munroe, external affairs director for Equifax said: "In the current climate, the key is for consumers to be as informed as possible when making new applications for any form of credit".

He adds that although there appears to be some signs of a loosening in the strict lending criteria seen over recent months, “the reality is that lenders are still only keen to offer the best rates to the customers who appear to present the lowest risk”, in news that could interest those seeking 0% purchases deals on credit cards.

Continuing, Mr Munroe claims that those Britons who have been turned down for 0% credit cards offers or any other form of borrowing are now looking to obtain a copy of their credit report in order to find out more about the criteria that lenders use when making a borrowing decision.

Adding that a financial score report is quickly becoming a "'must have' accessory", he states that obtaining such a document can help people to dispute data on their file which they believe to be incorrect.

Furthermore, in obtaining a copy of a credit score report, people with previous money management problems can add a note to the file providing the reasons as to why they defaulted on credit cards or other borrowing arrangements, allowing future lenders to take this into account when processing applications for credit further down the line.

David Black, principal consultant of banking for Defaqto, claimed last month that those looking for a new credit card deal must be made aware that factors such as employment background and reasoning behind borrowing are a small number of areas lenders will take into account when assessing a request for credit.

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