FinanceTeam

Credit Check Footprints

There has been some debate recently on the impact of multiple credit checks leaving "footprints" on a persons credit record. These multiple footprints are claimed to have a negative affect on a persons ability to receive credit as they may indicate an impaired credit history or point to identity fraud. One of the major credit checking agencies, Experian, claims this is only the case in some borderline cases, but has still brought in a new service called a "quotation search". This is similar in content to a credit search but is used when the customer is only asking for a quotation and not making a proper application. Experian says the service has been widely publicised but is not being used by many lenders yet. Most of the lenders questioned say that the new check just adds complexity to their processes without adding any real value. Industry bodies are now taking an interest in this area and we could soon see some new guidelines and perhaps regulations in the area of creit checking.