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Change in credit rating - pricing for risk

I've just had an email from checkmyfile.com, that included link to the information I've copied and pasted below -- first I've heard of any changes in the pipeline...comments anyone?

*****We've reported previously that a huge change is about to happen regarding the amount of information that lenders will use when they assess you for credit. From October, your credit file will be distilled down to contain only your own details.

Our research shows that for the average person, only 14 accounts will be reported on credit files compared to an average of 21 now. The number of searches will also reduce similarly, and we estimate that most people will lose almost 40 points on their Checkmyfile.com credit score because of the loss of information, enough to knock many into a lower star rating.

With so many lenders moving to 'pricing for risk', this means the price you will pay for credit is more than likely to increase. Lenders are also likely to be a little more picky as they get to grips with the new rules on information disclosure.

So, by applying now, you should consider taking advantage of accessing cheaper finance. ********

Reply to
L
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I thought the idea that a credit rating was a number was a myth?

Reply to
Alex

It's true

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Reply to
Tom

How can these people get away with charging 24 for a credit report (i have just looked at their site) when it's normally just 2 if you buy your credit report direct from the 3 main UK credit agencies?

Reply to
Adrian Boliston

My feelings exactly - I only use their site for the free information.

L
Reply to
L

I thought there were only 2 main UK credit agencies... experian.co.uk & equifax.co.uk Who's the 3rd?

Reply to
Lo Salt

"Lo Salt" wrote

CallCredit

Reply to
Tim

Unless it was only a short offer you can get 30 day free trial at experian to see your details free - then remember to cancel as 50 a year to tell you if someone looks at your file is a little expensive - IMHO.

Mark BR

Reply to
Mark BR

"Mark BR" wrote

That 50 gets you more than just a notification of searches.

For instance, you can get unlimited online credit reports - normally around

8 each - so anything more than around half-a-dozen online checks in the year will make it worthwhile. If you'd prefer to compare it to the 2 postal report, those would cost you more than 50 for a report once a fortnight - the online ones are updated each week (so if you check every Sunday, say, then it'll be 50 instead of 104 and you'll have the benefit of immediate access online rather than waiting for the post!).
Reply to
Tim

No. The idea that credit rating is a number held by the credit reference agencies is a myth.

The credit reference agencies pass information to lenders, and they use that information to calculate their own credit score, which is usually a number.

Reply to
Jonathan Bryce

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