Would-be borrowers may be surprised to learn exactly how much information is now included into their credit record, finance experts have warned.
Once up on a time, credit records would have just included the biggest and most obvious items ñ mortgages, credit card payments and long-term loan payments.
But as electronic payment methods have come to be used for most forms of billing, almost all kinds of payment history that can be tracked electronically are being used.
“It used to be only large loans that were recorded. Now all kinds of credit, including your mobile phone payments, count too,” Neil Munroe of Equifax told the Daily Mail.
“Every time you apply for any kind of credit the lender will search your records. You’ll also be marked down for a large number of searches.”
Delays in paying such items as utility bills may be marked down as a negative on your record, but you should be able to add an explanatory note on items you disagree with.
Credit records are used to calculate the best rate of borrowing when you compare loans, with a third of borrowers charged up to double the advertised rate.
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