Debt consolidation ‘requires good credit file’

Those who want to get credit for debt consolidation need to ensure they have a very clean record, an expert has stated.

Head of regulatory affairs and communications at credit reference agency Equifax Neil Munroe noted lenders have been choosier about who to lend to after the credit crunch and because of this many people can be turned down even for minor blemishes on their file.

He stated those looking for credit need to access their files to check for any problems and where there are inaccuracies that could impact upon an application, take these up with the parties concerned.

For those who have been turned down, the best way to build up a credit score again is to ensure a good, clear record of transactions is present by the time of the next application, Mr Munroe advised.

“The general rule of thumb is that if you can show a good repayment history over the last six to 12 months then that will act in your favour,” he said.

Figures from Equifax show there was a 205 per cent rise in the number of applications for credit files from members of the public in October this year compared with 2009, while the tally for the last 12 months is up by 129 per cent.