Consumers 'must check their credit score'
Published On 18 September 2007
People in the UK could find themselves in financial trouble - and need things like IVAs in the future - unless they protect their credit score now, an industry expert has warned.Jim Hodgkins from the consumer website CreditExpert.co.uk explained that many lenders are starting to tighten their borrowing criteria in the face of the ongoing credit crunch.
He added that many people could see their mortgage payments rise sharply as fixed-rate deals come to the end of their terms.
In an increasingly bleak financial climate, Mr Hodgkins said that it was vital that consumers keep a close eye on their finances and credit score.
He explained: "As the US credit crunch spills over into the British economy, we all need to keep an eye on our credit commitments and keep checking our credit report.
"If your credit report shows that you are not keeping up with your current commitments, you become an unattractive proposition to lenders as they do not want to be responsible for lending you additional sums you may not be able to afford to repay.
"By offering a snapshot of what you owe and how well you are managing your finances, your credit report can help you to work out how much you need to spend on essentials and how much you have left over, helping you to weather the credit storm."
Recently, Andy Davies, a spokesperson from IVA.co.uk, warned that consumers should only consider IVAs as a last resort.
