Not checking credit file a costly error

The best mortgage and credit card deals have become more difficult to get, but by spending just £6 checking their credit files people could improve their chances and potentially make big savings, says a new report from Which?

A survey by the consumer organisation found that 16% of Which? members who had checked their credit files found mistakes on them - ranging from incorrect personal information to evidence of identity fraud.

Lenders use credit files to help them decide whether to offer credit, and at what rate, so an inaccurate file can result in being turned down or charged a higher rate of interest. By spending just £6 people can check and correct any errors on their files, and could potentially save themselves hundreds of pounds.

Two thirds of those surveyed by Which? had never checked their credit files, and those who had checked their file had usually done so with just one agency. Which? advises people to check their credit files annually with all three UK agencies - Experian, Equifax, and Callcredit - as they hold different information.

Martyn Saville, Senior Researcher, Which? magazine, says: "Lenders have become more wary about who they offer credit, but checking that your credit files are up to date and accurate before you apply for a mortgage or a loan could improve your chances and ensure that you don't end up out of pocket because of an error.

"You can't afford not to check your credit files - it's £6 well spent when you consider how costly and inconvenient a mistake on your files could be."