Consumers warned that lenders consider past debts

About one in ten people believe that lenders will not look at a person’s credit history when deciding whether to issue loans.

However, evidence of missed repayments stays on a credit record for about three years and is used by lenders to determine how well a person can manage their credit commitments.

In addition to this, details of bankruptcies and court judgements can stay on records for six years, affecting a person’s chances of securing credit in the future.

The research commissioned by CreditExpert also found that a third of people have been refused loans in the past, despite not knowing the reason why.

It consequently advises people to keep up to date with their credit records so that they are aware of their situation and can protect their identities against fraud.