UK consumers have free and easier access to their credit reports online since the Department of Business, Innovation and Skills, financial organizations, and political parties established an agreement in 2010. Monitoring credit reports often decreases consumer vulnerability to ID fraud, incorrect data, and other credit rip-offs. This as well helps consumers handle financial obligations dutifully as information stored in a person’s credit history may affect creditworthiness. Some credit reference agencies (CRAs) like Experian offer service-free credit information for consumers
Indicators of Good Credit Standing
Financial groups (lenders and brokers) have different scoring systems to evaluate borrowers. Some lenders give high scores for responsible account and entitle these creditworthy consumers to the best deals. In the UK, top credit reference agencies have distinct bases for assessing acceptable credit rating. Some of the key elements considered in creating credit reports are information submitted by the consumer (usually in registration forms), credit history, and public records.
Credit brokers advise borrowers to sustain good scores to get the best deals in case of emergency or future credit applications. Lenders usually consider responsible borrowers for credit score leads. Helpful advice includes staying within credit limits, paying bills on time, and regulating/reducing new applications for credit. Observance of these shape up a borrower’s financial behavior.
Keeping the public informed of relevant legislations and related policies also educate consumers on how to handle their finances. Here are some of these must-reads:
- The Consumer Credit Act of 1974 – granting consumers statutory right to access their credit report
- The July 2009 Consumer White Paper – government collaboration with CRAs to improve public awareness on comprehending credit reports.
- The Consumer Credit Act of 2006 – intended to enhance the scope of the 1974 version to increase consumer protection
Uncertainty in the UK economy in 2017 was predicted to slow down the marketplace-lending sector. Some lenders forecast a major shakedown in which leading financial groups will remain and small players are further weakened.
Help UK consumers analyse their credit scores and financial needs. Datablazers can provide you responsive data of individuals who like to be informed of their credit worth every now and then. Contact us now for more information.
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