No credit history could be a setback
Research from Experian, the global information solutions company, has shown that a consumer without credit history may encounter difficulties due to the fact that lenders have nothing on which to base their decision.
Experian commented that the amount of people opting not to register on the electoral roll is also an obstruction – this is the most important method of assessing a person’s reliability.
Lenders do like a registered financial background and it can be difficult to get started if you have just turned 18 or moved to the UK from abroad, Experian added.
In spite of the above, according to money charity Credit Action, the UK has picked up £1.3 trillion in personal debt.
It is estimated that 5 million households would be refused a conventional, high street mortgage quote because they are suffering from some form of bad credit.
Comments (1)
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it is rubbish, I’ve no credit history, hence a bad one. I’ve no loans, got good saving and cannot get a credit card. I’ve always paid bills on time, got a good history living at only few properties. The system is so faulty.