You’ve probably heard of World Health Day and Walk to Work Day. But a new addition to the list is Credit Awareness Week taking place between 27th and 31st March.
The initiative aims to persuade lenders to give borrowers better, clearer information when they are turned down for loans, including mortgages.
"It can be one of the most frustrating parts of applying for credit – you’re turned down but you have no idea why and feel there’s nothing you can do about it,” says CreditLadder CEO Sheraz Dar.
Credit Awareness Week, which has been launched by publisher Credit Strategy in association with Experian, includes a quiz to help borrowers understand the myths of lending.
This includes whether previous occupants’ borrowing at an address affects the current residents’ credit score (it doesn’t). Take the quiz here, http://www.experian.co.uk/consumer/credit-education/common-credit-myths.html.
“For too long borrowers have not been told why they are declined for a loan, and have not been made aware of how much their credit score can influence the decision process,” says CEO Sheraz Dar.
“We are very pleased to hear that Credit Awareness Week wants to persuade lenders to offer borrowers more transparency about the loan decision processes.
“The more people understand how credit score works, the more services like ours can help them improve their score by using their rent payments to count towards it.
"CreditLadder is already adding millions of pounds of rent annually to tenants credit files."
Credit Awareness Week is being held in parallel with an industry gathering of big brains at the QEII conference centre off Parliament Square, which is the largest gathering of its type in Europe to date.
Major industry and government players are getting together to discuss a range of issues that affect how people get credit including how credit profiles are compiled, something many CreditLadder users are interested in.
Other topics up for discussions this week include how money is lent, loans are approved, the role of new technologies, how vulnerable borrowers are treated and how people’s finances are assessed when they are in debt.
On Tuesday this week an early day motion was tabled asking MPs to debate how borrowers can be treated more fairly and consistently when applying for credit, which was followed by a reception on the House of Common Terrace Pavilion.
Remember, CreditLadder can help you improve your credit score.
CreditLadder can improve your credit position by reporting your rent payments. CreditLadder is the first way to improve your credit score and position across all three of the main Credit Reference Agencies in the UK, namely Experian, Equifax and TransUnion. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money. CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.
Remember the content provided in this article is for information purposes only and should not be considered as advice.