Lenders may be forced to open up

Posted by Richard Catlin in Declined Credit on 9 April 2009 - Richard is Marketing Director at checkmyfile.

Credit card and loan providers are set to be asked to be more transparent about the way they calculate the interest rates they charge consumers, as part of an Office of Fair Trading (OFT) review of their practices.

The OFT’s intentions were initially announced as part of the Pre-Budget report last year, when the Chancellor called for a plan to tackle anti-competitive behaviour - largely in response to the raft of mergers caused by the banking crisis.

One of the key areas that the OFT will be focussing on now is the role that credit reference agencies play in lenders’ decision making process, and the transparency of their risk-based pricing. The way that banks treat customers experiencing financial difficulty is also under the spotlight once again.

There has been a general tightening of credit scoring criteria since the onset of the credit crunch, but the average cost of credit has also been creeping up. Examples include both Egg and Capital One making massive hikes in their typical APRs in tandem with tightening up of their lending appetites.

Egg attracted criticism for withdrawing the credit facilities of thousands of customers, apparently because of alleged changes in their credit profile. Despite their claims, many of those affected were found to have near-perfect credit ratings.

As the amount of information that lenders are sharing with each other about consumers increases, the OFT is seeking to put together a framework of recommendations that will ensure that consumers understand how their personal information is used, and that they are treated fairly.

You can check the information that lenders use to assess any application you make for credit by checking your credit file online. Our reports are both the cheapest in the UK, and the most comprehensive.

10 Things That Might Be Affecting Your Credit File

At some point or another, pretty much everyone has their credit file checked. Whether you’re applying for a job, trying to rent a property, applying for a mortgage, loan or credit card or even comparing insurance quotes, the information your credit file contains will give potential lenders a detailed window into your credit history. It’s about so much more than just your score.

Published on 15 May 2018 by Ben Ryland

Full Article

Turned Down For Credit? Find Out Why.

Getting declined credit can be a huge blow to your plans, especially on potentially life-changing purchases like car finance or a mortgage. Even if you have a good financial history, there are plenty of reasons to get declined credit, and finding out why your application was declined and addressing this problem is the first step to making sure that you won’t be turned down the next time you apply.

Published on 4 Jan 2018 by Jamie Mackenzie Smith

Full Article

What to do if you get declined for credit

Have you been declined credit lately? When you apply for a new credit card or a loan, it is likely that you have the money earmarked for something in particular. Perhaps it’s a wedding, a holiday, or consolidation of existing debts. But whatever your reason for borrowing, being declined for credit can really throw you into a panic, especially when you have no idea why you weren’t accepted.

Published on 16 Mar 2017 by Kelly Luff

Full Article

Declined for credit, what to do

Being declined for credit sucks. Even if the applicant is an otherwise sensible human being, it’s not always easy to accept that a person or computer has decided that you are not worthy of their finance. Even if you do manage to remain stoic in these situations, sometimes that money was needed for financing your grand plans or for debt consolidation, which can be disappointing and/or stressful.

Published on 22 Nov 2016 by Kevin Pearce

Full Article

Small businesses still struggling to find affordable credit

42.4% of credit applications have been turned down, up 1.8% on the previous quarter’s reported experience, according to latest reports from the Federation of Small Businesses (FSB).

Published on 24 Sep 2012 by Barry Stamp

Full Article

Another reason not to go bankrupt

The process of entering into a bankruptcy – whether forced or voluntary – is a difficult scenario for thousands of people in the UK each year, but the decision by the Co-operative Bank (Co-op) to stop offering bank accounts to undischarged bankrupts could be about to make things a whole lot worse.

Published on 18 Sep 2012 by Ian Carpenter

Full Article

Access to 'basic' bank accounts to get easier

The Government has called for people who have been declared bankrupt to be given easier access to bank accounts, as part of its wider investigation into consumer credit.

Published on 27 Jul 2010 by Richard Catlin

Full Article

Was it an unhappy Easter for Egg boss

So, Easter is over and done with for another year - and so is the reign of Egg boss Ian Kerr, who has quit the online bank after only a year in charge.

Published on 3 Apr 2008 by Richard Catlin

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews