Concern at credit report inaccuracies

17 Dec, 2014

A new report has found that one in three consumers who checked their credit report in the last two years have found errors on their file.

The most common mistakes according to the findings from uSwitch included the wrong personal finance products, such as credit cards, listed, the wrong address and even the wrong name of the bank or company providing credit.

The worrying issue for individuals is that errors on a credit report can see them being charged higher rates of interest on their borrowing and in some circumstances being turned down completely.

Consumers are also unaware of how credit decisions are made. Only one in four said the lender had explained to them why they were refused credit, while a third of people who were turned down were given no explanation at all.

A spokesman for uSwitch, said: “If your report contains errors, you can quickly find yourself rejected for credit. As a result, the research shows many consumers are turning to more costly forms of obtaining credit and can end up with debt that’s difficult to manage.