An occasional blog to accompany the business news on BBC Breakfast.

Wednesday, August 02, 2006

Credit checking

Good morning everyone.

We got such a strong response to our item on credit checking we've decided to spend another morning on the issue.

To answer your questions about it, we've invited in Jill Stevens, a director at Experian - one of the big three credit reference companies.

Banks, credit card companies, mobile phone firms, high street stores - even car dealers - all check out our credit rating before they decide to give us loans or credit.

Credit checks also help decide how much interest we pay on those loans.

The checks are carried out by three major credit reference companies. They keep all manner of sensitive information about us on their files. They record how good we are at paying back debts, if there are court judgments against us, and if we've been bankrupt in the last six years.

But it's claimed that one in three people have errors on their credit file.

So how do they get this information? Why do they need it? What do they do with it? And how do we fix it if it's wrong?

We'll answer your questions on air at 0645 and 0745 this morning. Text us on 83981, or message us through the Breakfast website.

And in between those times, we'll answer some more on this blog. Just add your comments here.


Blogger CroCop said...

Upon clearing personal arrears, I understand that you are able to contact yourselves and ask for the information to be amended or removed (?). How, if possible, would someone go about removing a CCJ from the record?

Many thanks

7:07 AM

Anonymous Ian Sandeman said...

There are various documents available on the internet that detail how to "repair your credit rating". Do these guides really work, can you repair your credit?

I would also like to know why US citizens get free dredit reports whereas we in the UK have to pay £2 to each company for our reports?

Ian (Scotland)

8:04 AM

Anonymous Mark T said...

It is amazing what impact a less than perfect credit rating can have on both you and any "associates" (usually your spouse). I had a dispute with a credit card company recently who without my knowledge registered a default while the dispute was ongoing. My first knowledge of this was when my wife's bank mentioned that there was an issue. The credit card company was intransigent and aggressive, calling me at 9.30 on New Years Day! I went to the Financial Services Ombudsman who, after investigating agreed that the credit card issuer did not take sufficient heed of the dispute and should not have put the account into default. He ordered the credit card issuer to expunge the defaults from my credit report with Experian and Equifax - this has now happened and I have an accurate credit rating again - but it took 7 months to sort.

8:08 AM

Anonymous Anonymous said...

Experian just take money from you but do not help you clear your credit report! You pay for a report and when you tell them what the problem is they refuse to do anything! I was refused credit because apparently I am not on the electoral register.. I added myself 2 months ago and this was confirmed by the council.. After Experian took 6 pounds from me they refused to update their records until the information was spoon fed to them- this directly contradicts the pro-active image the representative of experian just spoke about on BBC. They told me to wait until it has been updated and that I will not be able to apply for any credit until it has been updated. However, they said I can ask the council for a letter which means I can't apply for anything on line and need to endure bank ques. Their response was to just sit and wait until they update it, probably after a month!!

8:16 AM


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