‘Missing’ credit report information could affect your ability to get credit
Fri 19th Feb 10 - 11:30

A report from The Times says that ‘There are estimated to be between 40 million and 50 million active financial accounts of all types, including mortgages and credit cards, classed as “missing” because they do not appear on the credit files held about borrowers by credit reference agencies.’

These ‘missing’ financial accounts are the details of bank accounts, mortgages and credit cards opened before 2000. They are referred to as ‘missing’ because they do not show on borrower’s credit files held by credit reference agencies.

The problem seems to stem from the fact that not all banks and building societies have joined industry-wide practices of sharing information about borrowers, even if the borrowers have given their permission.  Legally, high street lenders are not obliged to share this information.

Adverse credit information like missed payments and CCJs are already being shared more commonly by the banks.

Policy adviser at Which? Vera Cottrell said: “A missing account could have a significant impact on a lending decision. We do not think anybody should be forced to agree to share data, but if you are applying for credit it makes sense that lenders see what other accounts you have open. It is vital that the Government and the industry work out a solution to this problem.”

Craig Gedey Marketing Manager at Debt Advisory Line said: ‘A small amount of information on your credit file may affect an application for credit as much as having poor credit information like missed payments.’

‘Ultimately the more positive information a lender can see on your credit file the more likely you are to be accepted for the credit you want. However this report suggests that it now also depends if the lender has access to the positive aspects of your credit file.’

‘If you are struggling to keep up with repayments on a loan, mortgage or credit card you should seek professional advice from a DEMSA approved debt Management Company.’
 
‘At the Debt Advisory Line our focus is helping people get out of debt in the shortest possible time. We know how stressful debt is and work to help people who feel under pressure.’

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