'Sensible' lenders warn of repeated credit checks

22 September 2006
A spokesperson for the online credit information agency Equifax has warned consumers of the problems that can arise from failed or repeated credit applications.

Neil Munroe, the external affairs director for Equifax, said that it would be "sensible" for lenders to highlight the negative impact of failed checks, and even the problems that can arise from having your credit history checked too often.

"We certainly as a credit reference agency have taken a lot of time to make it clear to people that constantly applying for credit that you have been turned down for is a bad idea," Mr Munroe explained.

"They (borrowers) should really understand why they are being turned down before they go on. The lending industry does have an obligation and code of conduct that means they should inform people why they have been turned down."

Mr Munroe also added that while rebuilding a damaged credit rating was possible, it could take a long time and may, in many cases, be conditional to changing certain financial habits.

To read more about checking your credit rating, click here.

track© Adfero Ltd