10 million could fail credit score

Nia Williams

March 17, 2010

The survey of more than 2,000 adults in the UK found that 13% of people have not taken out any financial product since before the year 2000. With credit agencies unable to access data on accounts opened before this date, it means that these six million people may not have enough activity showing on their credit record to pass an automated credit score.

In addition, 9%, or more than four million, people do not know for sure whether they are on their local electoral register, which again could seriously hamper their chances of passing a credit score.

This means that over a fifth of the adult population could be prevented from getting a mortgage by lenders that operate rigid automated credit scoring system.

Charles Morley, head of sales and product development at Kensington, said: “The best buy rates on many prime deals are only available to the select few who meet a long list of rigid criteria and, as a result, many good borrowers are being prevented from getting a mortgage because their circumstances are slightly more complicated than can be accommodated by an automated credit score.

”If mortgage intermediaries have any clients who have failed a credit score there may be a simple reason why they were rejected by an automated system even though they are a perfectly credit worthy customer. Perhaps they are not registered on the electoral roll, or maybe they simply don’t have enough credit history to their name. As Kensington’s underwriters have the expertise to make decisions on the customer, not just their credit score, Kensington may be able to help where other lenders cannot.”

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