Brits are increasingly checking their financial history ahead of applying for credit cards and other financial products, according to new figures.
Research carried out by Equifax shows that applications made for its credit reports increased by 9.6% over the first quarter of 2009, in comparison to the same period in 2008.
External affairs director for Equifax - Neil Munroe, said: "In the current climate, the key is for consumers to be as informed as possible when making new applications for any form of credit".
He adds that although there appears to be some signs of a loosening in the strict lending criteria seen over recent months, “the reality is that lenders are still only keen to offer the best rates to the customers who appear to present the lowest risk”, in news that could interest those seeking 0% purchases deals on credit cards.
Continuing, Mr Munroe claims that those Britons who have been turned down for 0% credit cards offers or any other form of borrowing are now looking to obtain a copy of their credit report in order to find out more about the criteria that lenders use when making a borrowing decision.
Adding that a credit report has quickly become a "'must have' accessory", he states that by acquiring such a document could effectively allow people to dispute data on their file which they feel is incorrect.
Furthermore, in obtaining a copy of a credit score report, people with previous money management problems can add a note to the file providing the reasons as to why they defaulted on credit cards or other borrowing arrangements, allowing future lenders to take this into account when processing applications for credit further down the line.
Speaking in May, principal consultant of banking for Defaqto, David Black, claimed that people seeking credit card deals should understand that factors such as the reasoning behind borrowing and employment background are just a couple of things lenders will look into when deciding whether to approve or reject credit.
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