Study highlights ‘ignorance’ over credit reports

A recent study has suggested that there is a widespread ignorance of the importance of checking credit reports in the UK.

Figures from Moneysupermarket.com have shown that only one in six Britons intend to check their reports this year and close to 13 per cent have no idea how to do so.

In some cases, failing to check a credit report can lead to debt management difficulties as a result of unidentified outstanding arrears, the price comparison firm has claimed.

Even having small amounts of debt outstanding can make a significant difference to lender attitudes and can often result in higher interest rates being charged.

Highlighting the importance of checking credit reports, Tim Moss from Moneysupermarket.com said: “An error on your report could typically lead to mortgages being rejected, or you being offered a product but at a much higher interest rate.”

Earlier this week, Neil Munroe from Equifax said that many people will be forced to use more expensive debt as UK lenders become more reluctant to offer cheap loan deals.