Watchdog encourages people to check credit files

People are being encouraged to carry out a check on their credit record that costs just £6 and could help them to be approved for a loan.

Consumer watchdog Which? has urged borrowers to carry out the check after its research showed that mistakes are commonly made on such records.

The survey found that 16 per cent of those who checked their credit rating found inaccuracies on their files, including evidence of identity theft and wrong personal information.

Errors such as this could lead people to be rejected by lenders, the organisation warned.

Senior researcher Martyn Saville commented: “You can’t afford not to check your credit files – it’s £6 well spent when you consider how costly and inconvenient a mistake on your files could be.”

Meanwhile, recent research conducted by GE Money Home Lending discovered that one in eight people had applied four or more times before finally being approved for a loan or mortgage.

By Jamie Price