Consumers penalised for searching out best deals

| October 30, 2009 | 0 Comments
Consumers penalised for searching out best deals

Savvy consumers are afraid to apply for the best credit card deals in case the application leaves a black mark on their credit rating.

This is the view of Toby Van Der Meer, managing director of money at price comparison site moneysupermarket.com.

According the Van Der Meer, the credit rating system allows credit card companies to push consumers into a “no win” situation.

This is because all credit card applications - even rejected applications - leave a mark on the applicants credit rating.

“Our research shows that many consumers don’t understand the impact shopping around has on their credit rating,” Van Der Meer said.

“And those that do may be missing out on the best deals because they’re reluctant to make numerous applications in case it has a negative effect on their credit score.

“So it’s effectively a no-win situation at the moment.”

Moneysupermarket.com said it is lobbying the government for better regulation of credit scores.

“We have asked the Treasury Select Committee to press for change in this market,” Van Der Meer said.

“We need to see greater transparency and fairness in the consumer credit market, so consumers can shop around freely for products without any impact on their credit files.”

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