Insurers, mobile phone operators and utility companies are all using credit reports in order to make more informed decisions.
(PRWEB UK) 21 October 2013
A huge 77% of consumers are unaware that a potential employer may use credit checking as part of the application process, which could in certain professions, such as financial services, make a difference as to whether an individual is offered a role or not.
While the majority of consumers understand credit checking is part of the application process when applying for financial products with lenders, a large number of respondents were unaware that their reports are also used by insurers and mobile phone operators, while over half were unaware that utility companies might also use the information contained in their report to make decisions about them.
Key findings:
- 86% think banks are the only user of credit reports
- 45% are unaware mobile phone operators check credit reports
- 51% are unaware that utility companies check credit reports
Tom Ilube, Founder of Noddle commented: “Credit reports are used much more widely than many people realise - not just when you are applying for a loan or credit card. Insurers, mobile phone operators and utility companies are all using credit reports in order to make more informed decisions about the risk you pose and if you are likely to meet your financial commitments to them.
“Potential employers also need to be sure of who you are and an increasing number are choosing to use credit checking facilities in order to verify information that has been provided at the application stages to confirm an applicant’s identity."
Tom concluded: “It’s important for consumers to know what information is held on their report and how it’s used as it can affect so many areas of a person’s life. Our research has confirmed that many people are still unclear about what their credit file is used for - therefore having the ability to check your credit report for free whenever you want to is vital to spot any irregularities.”
*Research conducted by fast.Map from a sample of 1,536 individuals randomly selected from their Consumer Voice panel. Members are recruited via a number of sources to demographically represent the markets based on age and gender