There is no such thing as a credit black list
Credit blacklists do not exist
Monday, 19 Jun 2006 16:04
There is no such thing as a credit blacklist, which bars people from getting credit cards or taking out loans.
That is according to a new report by the UK’s largest credit agency, Experian, which is aimed at clearing up misconceptions about the industry.
"There are a number of myths about the credit reference process that have been perpetuated over the years, leaving many consumers baffled," said Jill Stevens, director of consumer affairs at Experian.
"Many of these myths have no basis in fact. It is important that everyone understands how credit works so they can have confidence that the system really does work for them."
Top five misconceptions
Myth: Credit reference agencies hold credit blacklists.
Reality: There is no such thing as a credit blacklist. Some lenders will say 'yes' to a credit application when others would say 'no'. Lenders look at the information on a credit report when they do a credit check, but nobody tells them whether or not to lend.
Myth: Previous occupants of your home can affect your creditworthiness.
Reality: Lenders can only carry out credit checks with the individual’s consent and on people, not addresses. Information about previous occupants can have no bearing on your creditworthiness.
Myth:Adverse information can be removed from your credit report for a fee.
Reality: Adverse information cannot be removed from a credit report and you should be very wary of any company that promises to 'repair' your creditworthiness. Only incorrect information can be altered or removed and the credit reference agencies will do this free of charge.
Myth:Your credit report shows when credit has been refused.
Reality: Credit reference agencies are not told which applications are successful and which are not. So a credit refusal cannot be recorded on your credit report. What is recorded is the fact that a lender looked at your information when you applied for credit.
Myth:Negative information about you always affects the rest of your household.
Reality: Unless you actually have joint finances (a loan, a bank account or a mortgage, for example) lenders will not be able to see information about you when someone you live with applies for credit – or vice versa.
Click here to download a copy of the full report.
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