Call for regular credit checks highlights growing UK debt problem

TUESDAY, AUGUST 08, 2006

The UK payments association APACS has published a new report underlining how consumers can check their credit report. The publication of the advice guide, titled Checking your Credit Record, has come off the back of research from Experian showing that only one in 20 UK consumers have opted to check their credit report.

On top of this, the Experian figures showed that a considerable 21 per cent of people, or one in five, are unsure of what their credit score is. As a result, APACS has launched a guide to assist UK consumers in the significance of their credit record and the benefits of undertaking regular checks. The new guide also covers areas such as what information is held, how to check records and importantly, how the records are used by lenders in making borrowing decisions.

Sandra Quinn, director of communications at APACS, said: "We hope out new guide will give people a quick route to find out everything they need to know about their credit record.

"The fact that only one in twenty people check their credit report is not good news and we would like to see this figure improve. We would encourage everyone to check their credit report at least once a year – not only is it the best way to ensure they don't have trouble accessing credit when they need it, it can also provide peace of mind that they have not been a victim of identity theft and that no one has successfully applied for credit in their name."

With recent research showing rising levels of debt, the checking of credit records is an important step for consumers to take if they are to stay ahead of their finances. Remaining unaware of one's credit rating could mean consumers have difficulty taking out homeowner loans and fall further into a financial quagmire. Taking out a secured loan can often prove to be a crucial step in helping consumers consolidate their debts and get ahead of their money situation.