Millions of consumers looking to apply for a mortgage, credit, a new mobile phone contract, or even a better utility deal, risk being rejected because of false errors on their credit reports according to research by Amigo Loans.
The UK’s largest guarantor lender’s latest research has found that 42% of people who check their credit report find mistakes, the equivalent to almost 10 million people across the country. While small errors such as misspelt addresses are unlikely to have major consequences, an incorrect non-payment mark can be the difference between getting a mortgage or loan and being turned down.
Despite so many errors being found, just one in seven (15%) know how to report them to a credit rating agency. Almost one in ten (9%) spoke with their bank/provider, which cannot help and a similar number (8%) turned to family and friends for advice. 11% admit they took no action at all, with 5% admitting they had no idea how to correct it.
The study also found that only two in five (41%) of people have actually checked their credit report, with just one in five (21%) looking in the past month. This means the number of people with errors on credit reports could be far in excess of 10 million.
The proportion of people who have spotted mistakes on their report was highest among those aged 18-24 years (44%), while those aged 55+ (23%) were the least likely.
Kelly Davies, Chief Communications Officer at Amigo Loans: “The message is really simple – check your credit file for mistakes and get them sorted! You might be turned down for a mortgage or credit because of a silly error. We’d like to see this system changed. It’s not an easy job with a number of different credit reference agencies, all holding slightly different information, using words and formats people aren’t familiar with. But it’s worth a bit of effort.”