Lenders 'are closely watching credit reports'

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Lenders 'are closely watching credit reports'

Tue 23rd Sep 2008

Increasing living costs are driving lenders to monitor customers' credit reports very closely, it has been claimed.

James Jones, of credit report service Experian, told a Times reader that the rising cost of living and worries about customers missing their payments are causing many lenders to keep a close watch on people's credit reports.

Writing in the newspaper, he told reader Jennifer Allen, whose credit score had dramatically reduced despite her debt not having risen significantly.

Mr Jones said that lenders now often take "mitigating action" such as reducing credit limits or increasing interest rates if they believe someone's financial circumstances are worsening.

He advised Mrs Allen to use direct debit to ensure she was never late in making repayments and to look at ways to simplify her borrowing.

He also urged her to visit Citizens Advice, National Debtline or the Consumer Credit Counselling Service if she felt she was losing control of her finances.

Earlier this year, research by CreditExpert found that only 26 per cent of people could accurately say how much they have left to pay on their loans while one in ten admit having no idea how much debt they owe.

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