Is Your Credit Data About to Get More Detailed?
3 minute read
Credit reports can be a big headache for borrowers from all backgrounds. From inaccurate data, which leaves you struggling to access credit due to mistakes on your report, to historic credit issues which have failed to be wiped from your file after the requisite six years; today’s credit reports can be a frustrating business. For those of you with a less-than-perfect credit record, understanding what is included in your report is crucial. This will allow you to approach potential creditors with confidence and work with them to find the right solution and access the products you want. However, things could be about to change as the “Big Three” credit bureaux (Experian, Callcredit and Equifax) start to consider integrating more sophisticated data and technology into the reports they produce.
Credit Reports Today
As it stands, your credit report is typically fairly basic – particularly when you consider the amount of data about your finances which is out there, and the way many technologies are now able to collect, collate and verify information. Currently, the data on a standard credit report includes: – Public record information (from Local Authorities, the Electoral Roll etc.) – Financial & credit information (from lenders, updated within 30 days) As you may notice when looking at your report, the information used can be outdated (particularly if you have made use of credit in the past month) and often difficult to verify. That’s why we’re likely to see a significant change in the detail and accuracy of credit reports coming into action soon.
The Future of Credit Reports
So, what are the possible changes we could expect? For starters, the “freshness” of the credit information in your report is likely to improve, as lenders get on board with automated processes which send credit reference agencies data about your usage in real time. Meanwhile, the rise of online banking now means that it’s possible, with the account holder’s consent, to draw on current account information. Regarded by many as one of the best indicators of an individual’s financial stability, information from your current account (including regular income and typical expenditure) could soon form an important part of your credit report. For many would-be borrowers this could be a good thing, offering proof of financial stability even if misleading “black marks” appear on your credit report. The verification of credit information is another possible revolution in the pipeline for your credit report. Currently information from the electoral roll can be outdated or inaccurate. Fresh use of ID verification by asking individuals for information about their transactions (just like a bank check when card theft is detected) will help to confirm the facts, while inexpensive checks like pinging mobile phone numbers to confirm the owner’s location will also help to make credit reports more accurate. Do you think it’s high time credit reports became more accurate? Perhaps you think the potential new measures are invasive? Have your say below. For more information about sourcing a “perfect fit” mortgage, whatever your credit rating, contact our team today on 0800 114 3575. Image source