The government’s refusal to share graduate debt details with the credit and loans industry means that hundreds of thousands of ex-students have incorrect credit scores.
While fortunate for young professionals looking for the best rate of borrowing, it could mean that many are able to gain access to unaffordable debt, warns reference agency Callcredit.
“The government has been putting a lot of pressure on lenders to know their customer better and make more responsible lending decisions,” said Mel Mitchley of Callcredit.
“To many people itís a no-brainer, the information should be shared as it would help people who have a responsible attitude to their student debt and prevent those who are already in difficulty being granted further credit. We need to have further debate on the matter.”
Commercial lenders share information about their customer’s credit ratings in order to protect themselves against bad debt and borrowers from taking unsustainable loans.
Just as some graduates may be granted more credit than they would if banks had a complete picture, others may be turned down for not having a checkable credit record.
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