Question of the week: Credit reference agencies

Former_MSE_Alana

Q. How can credit reference agencies justify their £60-£70 annual fee for credit reports when they are available for £2 a time? Nic, by email.

Martin's A. They don't have to justify it, they're commercial companies and it makes them money. Experian and Equifax compile credit files, so lenders can assess whether to loan out money to us. You have a statutory right to see a paper copy for £2, but the agencies spotted a lucrative market, selling 'credit monitoring services' for up to £70 a year.

These are often unnecessary, and prey on our fear of being 'blacklisted', worse at some entry points their sites just say "free credit report" without obviously explaining you need set up a direct debit and the cost if you don't cancel.

Yet on the bright side, it does leave open a loophole to get an online version of your credit rating for free. Sign up for the free 30 days trials on offer, then cancel before this time is up to avoid paying a penny, full details of how to cancel are in the Credit Rating guide.



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duggie1982

Nice one. As a business, why not.

Only costs McDonalds a few pence to make a Big Mac Meal but goes for about £3-£4 a go.

We are all here to make money.

CannyJock

As a full-time stoozer, I consider the £6.99 for Experian each month to be an acceptable business expense Lets me check what's on file whenever I feel like it to time new applications, confirm card closures.

jones_london

I chased up flybe earlier regarding the outcome of an application I made last week. They said I was declined because they couldnt verify where I lived (despite living here for 4 years and being on the electrol register)...They use Equifax for searches (ive never checked my report with them, only Experian)..So I got flybe to check my Experian report (which i know is correct) and they accepted me for a card - Yay !! I guess my lesson is to check all agency reports.

iceage3

hello

i am with experian and want to cancel.i have noticed there is a lot of free credit reports online now ,as soon as u put in email address the next page is payment page.
is there any out there without going through this?ie free

CannyJock

iceage3 wrote: »

hello

i am with experian and want to cancel.i have noticed there is a lot of free credit reports online now ,as soon as u put in email address the next page is payment page.
is there any out there without going through this?ie free

From their FAQ:

If you would still like to cancel your Credit Expert membership you can do so by contacting our team on free phone 0800 656 9000 and selecting option 4.

Joe_Bloggs

Why not just apply to the credit reference agencies for a loan, credit card or Mortgage ? These reference agencies could use their experience of lenders to advise which credit to apply for. The potential lenders were going to consult the credit reference agencies anyway. This would minimise the possibility of refused credit damaging a credit report. Some may think that this idea is far fetched however lowermybills from Experian has been going ten years.
J_B.

lovemoneyhoney

You can buy ID protection for cheaper than it would cost you to view your credit reports online and you get the same unlimited online access to your credit reports through Experian, Alerts to your mobile or email if you have any significant changes to your credit report (save you checking it!), Garlik Data Patrol - searches the web for your details and sends you a weekly report to show you which websites hold any of the personal details you ask it to seach for. You also get an advice line with a caseworker who helps you to clear your name if you become a victim and £60000 of insurance cover to help cover legal fees and any other fees associated with clearing your name. It also includes £200 of cover to relace your Passport or Driving Licence if you lose it or have it stolen plus a few other benefits...........
I have this cover through CPP and it only cost £69.99. Have used the credit reports and claimed for a new passport when i lost mine - no problem.

PNPSUKNET

Newbe spam

lovemoneyhoney wrote: »

You can buy ID protection for cheaper than it would cost you to view your credit reports online and you get the same unlimited online access to your credit reports through Experian, Alerts to your mobile or email if you have any significant changes to your credit report (save you checking it!), Garlik Data Patrol - searches the web for your details and sends you a weekly report to show you which websites hold any of the personal details you ask it to seach for. You also get an advice line with a caseworker who helps you to clear your name if you become a victim and £60000 of insurance cover to help cover legal fees and any other fees associated with clearing your name. It also includes £200 of cover to relace your Passport or Driving Licence if you lose it or have it stolen plus a few other benefits...........
I have this cover through CPP and it only cost £69.99. Have used the credit reports and claimed for a new passport when i lost mine - no problem.

never-in-doubt

Cheapest option is to do what I do and have a subscription to the statutory report so on the 20th of each month, Experian & Equifax send my latest file. I simply wrote in requesting it with payment of £24 each.

Obviously means I only get monthly reports but that is fine for my purpose and a lot cheaper....

PROLIANT

It is called "convenience"; you pay £2 for a paper based report which takes time to arrive, people do not want to wait - they want it yesterday, that is the culture we live in today, for example, you cant be chewed traveling 1 mile on the bus or on foot to the supermarket for a few odds n sods so instead you use Mr. Sings convenience shop on the corner of your street, you pay more for the items but you don’t care you got them quicker and with less effort - ergo you go online and enter some information and there you go, all of your credit information in front of you on your computer telly.

Simple, there is a market for this and people want to pay for it, although the whiners come on here crying they have been scammed once they realise that there ignorance of the terms and conditions or there laziness by not canceling the free trial period has caught up with them - what do you know, they are a "victim".

Sad.