Credit rating accuracy
September 8th, 2008It’s an extreme example of the potential harm caused by an inaccurate credit history but, according to Thisismoney, a businessman is claiming he could face eviction after an incorrect black mark was placed on his credit record…
A businessman says he could lose his home after a mobile phone firm wrongly told credit reference agencies he had not paid his bill. John Peters believes the blunder by O2 ruined his credit history and triggered a chain of events that threw his finances into turmoil. As a result, the 42-year-old, who runs an internet business, fell behind on his mortgage payments and he, his wife and two young children now face being evicted.
While it’s questionable just how instrumental the error was in leading to the serious financial difficulties which Mr Peters now faces, it highlights how important your credit record can be and why you should never assume all the information held about you is accurate.
You can request to see your credit file from any of the three UK credit agencies - Call Credit, Experian or Equifax. These sites also offer advice about protecting and improving your credit rating, which can have a serious impact on the cost of borrowing cash.
Remember that using Wonga responsibly is a great way to quickly improve your credit rating too - check out this earlier post for more information.
October 3rd, 2008 at 9:50 pm
One way of looking at a Credit Reference Agency or (CRA) is that it ‘protects lenders interests’. Actually it does a bit more than that, it protects consumers interests too. Although some consumers might not be happy that they have been declined credit facilities it is quite often in their own interests. Borrowing more money when someone is simply unable to meet their current commitments (or perhaps the extra debt would not leave enough money to cover monthly expenditure) really is not a wise thing to do. In the past before CRA’s many people fell into the trap of borrowing more and more to pay existing creditors, as the old saying goes ‘robbing Peter to pay Paul’.
It is fair to say that CRA’s do have a great deal of responsobility as data controllors, often the information they hold about you, your partner or even your children can have a very significant impact on both short term and long term financial affairs. But what happens when it goes all wrong? It can and it does. Unfortunately human error as with any venture or business happens without exception and it is really down to the consumer to be vigilant. A CRA will most definately NOT call you up and ask you if a report is correct, they will take the data they are provided with as being accurate. with so much data processed each day, it is inevitable that errors will be made, whether by the CRA or the reporting lender. You can check any data held by a CRA and if you suspect there might be a problem then you most certainly should, in particular if you are considering a product such as a mortgage. Unfavorable or innacurate data can have a massive impact and not only increase the APR you might pay but limit your choices. If you wish to check your data quickly then all the CRA’s will allow you to purchase their own unique on-line product, but you will pay a premium for this service. If though you want to be smart and can wait a few days simply purchase your individual report in paper format on-line for £2. You will get the same data, if not a little more detailed and you are also perfectly entitled to dispute any entries made as you would with the ‘on-line’ service. Its up to you really, pay for the premium service or wait. At the end of the day CRA’s are a fact of life and quite important to both lender and consumer. I believe it is important to realise when we might over stretch oursleves financially and that is why I use this service. While some have ’scoffed’ at my paying a higher interest rate I am the one laughing. I afterall am not commited to a long term debt, actually I am in control of my finances …. makes you think
March 20th, 2010 at 4:13 pm
fix your credit…
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