Equifax provides advice for consumers finding it difficult to get credit because of a lack of information on their credit file

www.equifax.co.uk

London, 20th February 2012 – This weekend’s BBC Radio 4 Moneybox featured the plight of a consumer who had been unable to get a mobile phone agreement because she was not very credit active. The lady in question had what is known in the credit industry as a ‘thin file’. She didn’t have any history of credit agreements which made it difficult for the mobile phone provider to assess her suitability for new credit and, as a result, they declined her application.

Having a ‘thin file’ means there is little data on an individual’s credit file, making it difficult, sometimes, for banks, building societies and other financial services providers to confirm their identity as well as gain an understanding of their ability to manage credit. Neil Munroe, External Affairs Director of leading instant online credit information provider, Equifax, admits that this can be a ‘catch 22’ situation. Someone without any credit can find it difficult to get new credit. But he has some useful advice for others who may have ‘thin files’.

“Thin files are most likely to occur for people between 18 and 20, who have only just entered the credit market or those in their 60’s and 70’s who may not have been very credit active previously” explained Neil Munroe. “Women whose husbands have been responsible for their mortgage payments are another group that can have ‘thin files’.

“For some organisations their automated systems will decline new credit applications simply because they can’t verify the credit status of the individual electronically. It’s therefore wise for those with ‘thin files’ to take a number of steps to give prospective lenders more confidence in their ability to manage credit.”

“First and foremost, make sure you’re on the electoral roll. Lenders will want to be able to verify the identity of the individual, which they do through electoral roll data. Then, if you know you haven’t been credit active, it makes sense to try to create a credit history. To do this, you can go to the bank or building society where you have your current bank account. They will have a picture of your financial history and, therefore, are more likely to extend new credit to you. So by opening a credit account of some sort with them, which you should keep paid up to date, you can start to create that credit history.”

“Another way to create a credit history is to apply to an organisation like a store card provider where they may be prepared to provide credit on the basis that you are buying goods from their store.”

“But if a credit application is rejected it’s important not to keep applying to new companies because this may also affect your ability to get credit”, continued Neil Munroe. “The more times it appears someone has applied for credit in a short space of time, the more likely a lender or organisation extending credit may reject the application because they will be concerned this will be an indication of possible fraud or over-indebtedness.”

“Instead, we strongly advise anyone who is planning to apply for credit, or who has had an application declined, to get a copy of their credit file – so they can see straight away what information is being used to assess them. They also have a right to ask the lender for a reason for their decision.”

“And if the consumer does believe that their lack of credit history is at the root of their inability to get credit, but they have a good history of paying other financial commitments, such as utility bills, then they can add a statement to that effect to their credit file, which lenders are obliged to read. This is called a ‘Notice of Correction’.

Equifaxoffers a free online credit check, where you can view your personal credit report, including any joint agreements you may have. The Equifax Credit Report, with the facility to access credit information for the first 30 days free, gives consumers a valuable insight into their credit status. Accessible simply by logging onto www.equifax.co.uk it is designed to help individuals understand their credit file and see what lenders see to assess new credit applications. It also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life’s challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

INDEPENDENT ID FRAUD EXPERT AVAILABLE TO COMMENT

ON ID FRAUD RISKS FOLLOWING SONY PLAYSTATION HACKER ALERT

www.equifax.co.uk

London, 27^th April 2011 – Chris Sherlock, Marketing Director of ID Fraud expert, Equifax, is available to provide expert comment on ID fraud and theft issues following the news that Sony has warned users of its PlayStation
Network that their personal information, including credit card details, may have been stolen.

Chris Sherlock, who is responsible for Equifax’s direct-to-consumer services which help individuals monitor for any signs of ID fraud and theft, can comment on the potential risks as a result of this security breach and provide advice if someone thinks they have been a victim of ID fraud.

“Fraudsters only need three items of personal information to be able to steal an individual’s identity” said Chris Sherlock.  “Sony is stating on its official Playstation blog that it believes the name, address, country, email address, date of birth and PlayStation
login and passwords of users have been stolen.  It is also saying that whilst there’s no evidence that credit card data has been taken, it can’t be ruled out.  So Playstation users do need to be alert to the potential threat to their identity and certainly should make sure they’re not using the same PINs and passwords for other online activities.”

In a survey conducted by Equifax*, 32% claimed they use just 1 to 3 PIN codes for all of their debit or credit cards and online accounts.  That means that if a fraudster gets hold of this limited amount of PINs, they could potentially gain access to all of an individual’s finances.  “In the same Equifax survey, 76% confirmed they use their Mother’s maiden name as a password or prompt.  Equifax therefore encourages consumers to avoid doing this as it is quite easy for fraudsters to work out, especially those who know their victim.

EQUIFAX TIPS TO PROTECT AGAINST ID FRAUD ONLINE

• Make sure your computer is protected with the latest virus protection that ideally updates hourly and you that you have a Firewall
  • Check the website address that you are shopping on starts with https:// not http://
  • Check there is a registered address and a landline number on the website
  • Before putting in any of your card details, ensure there is a padlock showing at the bottom of the screen
  • Do not use the same PIN number for all of your cards, and the same passwords for your email accounts.
  • If you are using a public computer ensure people can’t view your details and log out of the site, rather than just closing the window
  • Take note or print out of your receipt/reference details
  • Keep note of all of the online transactions you have made and check your bank statements for any unusual transactions
• No matter how much you trust your friends, work colleagues, do not give out your PIN number under any circumstances

Equifax also recommends that consumers regularly monitor their credit report to be able to identify if any unauthorised activity occurs that might be signs of a fraudster at work.

Tackling the threat of identity theft and fraud, Equifax Identity Watch Pro gives consumers unlimited instant, easy online access to their latest credit file, with automatic alerts within 24 hours of key changes to their credit report.  It costs £7.50 per month.  Or for just £2.99 per month, Equifax Identity Watch Lite makes monitoring a credit report easy by automatically alerting the individual within seven days of key changes.

*Equifax Identity Fraud Survey of 939 Consumers, June 2010

There may be some light at the end of the tunnel for first time buyers. Have a look at this press release from Equifax:

The launch of a number of 90% and 95% LTV (loan to value) mortgages in the last few weeks will be welcome news for first-time buyers with a small deposit. But leading instant online credit information provider, Equifax, is advising new homebuyers to check their credit file before making new mortgage applications, to ensure that they have the best possible credit status for the deals currently on offer.

“After the recession, 100% mortgages disappeared and buyers needed bigger and bigger deposits, making it very difficult to get on the property ladder,” says Neil Munroe, External Affairs Director, Equifax. “Cautious lending criteria also meant many consumers were unable to capitalise on property prices.

“The new 90% and 95% mortgages we have seen launched in the last few weeks, however, offer hope for first-time buyers. But it’s essential that anyone applying for a new mortgage ensures their credit file is looking good to give themselves the best chance of getting the best deal.

“In particular first time buyers need to ensure they are registered on the electoral roll at their current address – this is a crucial first check carried out by lenders and if they fail that their chances of getting a good deal could be scuppered straight away. They also need to be aware that if they haven’t been particularly credit active in the past this may have an affect on their ability to secure a good mortgage deal.

“Checking their credit file should be the first step, before shopping for a mortgage, as any refusals or too many searches on a credit file could make it even harder to secure a new mortgage. With a little preparation, homebuyers should be able to place themselves in a good position to gain access to new 90% mortgage deals.”

Equifax advises first-time buyers to get a copy of their credit report to see what the lender sees. As well as checking their electoral roll data and that all their current credit agreements are shown as paid up to date, their credit file will highlight any dormant accounts they might have forgotten about. Closing these will improve their credit status, as will paying off any agreements early.

“The two potential hurdles for a first time buyer with their credit file are a lack of any credit activity or missed payments on previous credit agreements”, continued Neil Munroe. “If an individual has never had any credit before this makes it hard for the lender to see that they will be a good risk. So it might be worth taking out a credit facility some months before making an application for a mortgage. If they make payments on time every month this will show potential lenders a responsible attitude to borrowing. For first time buyers who have missed payments in the past, they can add a Note to their credit file to explain the circumstances of past problems.”

Munroe concludes, “First-time buyers are essential to get the property market moving, but lenders still want to see that applicants are a suitable risk before approving an application. We welcome the new 90% and 95% mortgages, offering a vital lifeline for first-time buyers keen to get on the property ladder, but they will still need to ensure their financial house is in order to benefit from these deals.”

The Equifax Credit Report, with the facility to access credit information for the first 30 days free, is accessible simply by logging onto www.equifax.co.uk. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life’s challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

London, 2nd March 2011 – Officers from the Dedicated Cheque and Plastic Crime Unit (DCPCU) have issued a warning to commuters and other train users to be vigilant when buying tickets at unmanned machines on the train and tube network. The unit has noticed a rise in the number of card skimming devices being placed on payment keypads, which can take credit and debit card details from unsuspecting members of the public.

The DCPCU has offered advice to rail users on what to look out for when using unmanned ticket machines. But leading ID fraud expert, Equifax, is also urging anyone who is worried that they might have fallen victim to this crime to monitor their credit report regularly for any signs of unauthorised activity.

“The key issue with this sort of crime is that once a fraudster has someone’s card details they could well use it for a variety of fraud activities”, explained Neil Munroe, External Affairs Director, Equifax. “Fraudsters may use the data they skim initially to then secure other forms of finance or goods in the innocent victim’s name.

“Checking credit card and bank statements is, of course, essential. But looking at your credit report too to make sure no new accounts or finance agreements have been set up in your name is also vital.”

Tackling the threat of identity theft and fraud, Equifax Identity Watch Pro gives an individual unlimited instant, easy online access to their latest credit file, with automatic alerts within 24 hours of key changes to their credit report. It costs £7.50 per month. Or for just £2.99 per month, Equifax Identity Watch Lite makes monitoring a credit report easy by automatically alerting the individual within seven days of key changes.

To reduce the chances of train users falling victim to this type of fraud, the DCPCU has offered the following common sense advice:

· If someone close to the ticket machine is behaving suspiciously, use a different one

· If there is something unusual about the machine and you suspect that a skimming device has been attached to it, do not use it and alert a member of staff at the train station or the police

· Use your free hand to shield the keypad when you enter your PIN

· If someone starts crowding or watching you, cancel the transaction immediately and use another machine

“Recent research we commissioned revealed that the unseen threat of identity fraud and theft is the scam that most members of the public are worried about” concluded Neil Munroe. “It appears that people are more concerned about being victims of identity fraud and theft than falling prey to cowboy tradesmen or buying counterfeit goods. It’s the invisibility of these new frauds that is probably most worrying for people. You can’t see it – so you might not even realise you’ve become a victim.”

For those who haven’t heard of credit ratings before, it is basically a lenders way of deciding how safe it is to give you their money! The lender scores you on a set criteria (which is never published) to see how credit-worthy you are.

It’s based on a number of things such as your borrowing and repayment history, any CCJ’s, any current credit agreements, time at address, and whether you are on the electoral role.

So……..what’s next?

Firstly, I would highly recommend getting a free credit report from Equifax.
I started by getting a free trial, and now I find it worth my while to subscribe to a credit reference service so that I can check my report at any time. It lets me see outstanding credit balances that I have, and also allows me to ensure that no one has set up any borrowing facilities fraudulently in my name.

Once you have looked at your report, then why not purchase their score report, which actually scores you…so you know how likely you are to get accepted for credit.

So how to improve my score:

1) Ensure you are on the electoral roll, and this is reflected in the Equifax report

2) Ensure all of your lenders have your current address

3) If you have any unused credit facilities, such as credit cards which you have paid off the balance, then shut it down. If you have credit available to you then you may be less likely to be approved for future credit.

4) Ensure you do not default on payments. If you have a secured loan then you may find yourself losing your house – which is far worse than just having a bad score!!! Make your monthly payments on time.

5) Be careful who you “get into bed with”! If you decide to set up a joint bank account with your loved one – then ensure they have a good credit rating! Once you set up a current account, or get a mortgage with someone, you then become financially linked. So beware!

6) Don’t apply for lots of finance loans within a short space of time. If you get rejected, then wait a few months before re-applying. This can seriously mess up your score, and happened to me a few years ago.

So, what are you waiting for? Visit Equifax and make the most of their free trial. I found a free trial so helpful in sorting out my finances, spotting errors, and ensuring I maximised my chances of getting the unsecured loan I required to buy my motorbike!