Graduates ‘Should Heed Credit Rating’
University graduates are being urged to pay attention to their credit ratings as failure to do so could affect their chances of getting a job in addition to causing financial difficulties in the future.
Credit checking service Equifax said that a graduate hoping to earn their way in a sector that involves money, such as banking, should expect their credit history to be checked.”There may be some jobs which are financially based or have other sensitivities, where an employer may ask you if you can check your credit file,” stated Neil Munroe, external affairs director at Equifax. If you’re going into a position where there’s finance involved, it would probably seem appropriate that the employer checks your credit history.”
Equifax is urging graduates to obtain a copy of their credit report “and see what’s on there”. If anything is “not right on a credit report, credit agencies can investigate,” said Mr Munroe. Such news may encourage graduates to address their debts, for instance using debt consolidation loans.
“And if there’s something on there that they don’t like, but it is accurate, then they can put a statement on the file. There are ways in which people can put their side of the story across.”
Young adults should also make sure they are on the electoral register in order to avoid a bad credit rating, which may prevent them being approved for personal loans.
“Lenders, when they’re checking people out, don’t just make a credit decision - they want to check that it is the right person, because of the increase in instances of identity theft and fraud,” he added.
Although most young people have a “thin file” with little evidence of financial incompetence, any missed payments are likely to stand out, said Mr Munroe. As such graduates are urged to exercise caution when it comes to spending and repaying personal loans. Those with too many outgoings might consider a debt consolidation loan as a means of addressing their situation.
“If you’re just coming out of university, you need to be aware that you’ve probably only got one or two credit [histories] and if you don’t look after those, that’s all the lender’s going to see and that’s going to influence their decision,” he commented. Mr Munroe continued by stating that those with credit should make sure they are paying it off on a regular basis - perhaps by setting up a direct debit.
According to AXA, up to four million people are worried they may have damaged their credit rating beyond repair, with consumers aged between 45 and 54 most likely to be blacklisted. But resolving outstanding debts with consolidation loans means people have a better chance of opening a bank account, getting a job and applying for a home loan. AXA spokesman Steve Folkard said that “the knock-on affects of having a poor credit rating can be endless, as it becomes increasingly difficult to access credit”.
“Getting blacklisted is down to a number of factors but not paying your bills is a sure-fire way to worsen your credit rating - being on top of your finances is a must,” he concluded.
Whatever a consumer’s financial situation, getting the right advice is essential. Recently Birmingham Midshires stated that those who are in debt should be certain to seek out advice before taking action which could end up increasing their costs.
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