Pre-application credit checks would be "great result"

www.moneynews.co.uk > General finance > Pre-application credit checks would be "great result"

Pre-application credit checks would be "great result"

Wed 28th Oct 2009

A finance expert has suggested that consumers would benefit from the introduction of pre-application credit checks.

Chartered financial planner at Informed Choice Martin Bamford commented that changes must be made to the current credit system.

He pointed out that currently a consumer's credit reference file is affected as soon as an application for finance is made.

In his view, more could be done by lenders to inform people whether they will be eligible for a product before they apply.

Another option would be to offer pre-application checks.

Mr Bamford explained: "The introduction of widespread pre-application checks would be a great result for consumers, so we can all understand precisely what deal we can get."

Credit scoring is used by many lenders to decide if a prospective borrower is likely to be able to repay a loan, but they can also look at credit reference files, according to the Information Commissioner's Office.

When an organisation checks a credit reference file a record is made, the regulatory body adds.

Click here for more general finance news

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued