Consumers need to be on the electoral register to avoid bad credit rating

Consumers could receive a bad credit rating if they are not on the electoral register, according to experts.

Equifax, the credit checking service, said that younger people in particular should ensure they are registered as a poor credit rating could prevent them from being approved for a loan.

Neil Munroe, external affairs director at Equifax, said: “You need to be identifiable, and the electoral roll is still one of the key areas that is used to identify somebody.”

“So you need to make sure you’re on the electoral roll if you’ve not been voting,” he warned.

According to Equifax, when checking credit ratings lenders are also ensuring that the consumer is the person they say they are in a bid to combat increasing instances of identity fraud.

In 2006 the Department for Constitutional Affairs estimated that there were at least 550,000 unregistered voters in London.

Figures from the body revealed that one in four Londoners under 24 were not registered to vote compared with only two per cent of over-55s nationally.

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Mortgage holders told credit cards ‘not necessarily a bad thing’

People with mortgages who use credit cards to make sure they meet repayments are not necessarily doing the wrong thing.

According to the director of Debt Advice Bureau, Stephen Rose, some people have more or less paid for a house with the help of a credit card and “they’ve done very well”.

“If somebody is paying considerably less on their credit card than they are on their mortgage then it’s a good thing, but if they are paying more on their credit card than they are on their mortgage then it’s a bad thing,” he said.

A recent survey published by Shelter magazine ROOF showed that over a million people have used a credit card to pay off their mortgage or rent in the last year. This figure represents six percent of the population repaying mortgage loans or rent.

The Debt Advice Bureau is a not-for-profit organisation that gives information to residents in the UK concerning their debt issues.

The bureau sees around 4,000 people every month, giving them impartial advice on their problems relating to debt.

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Abbey launches credit card

Abbey has marked the launch of its new credit card with an eye-catching supermarket offer.

All customers will get five per cent cashback on the first £1,000 they spend in the stores while using the card.

Furthermore, every major supermarket has been signed up by the credit card provider as a participant in the scheme.

Abbey claims that, based on average spending figures, the offer will cover around five months of family shopping at supermarkets, assuming that the new credit card is used each time.

Roger Lovering, a managing director at Santander – the company which owns Abbey – said: “Our philosophy is all about offering real value for our customers. Supermarket cashback is the first example of that commitment.

“Once somebody becomes an Abbey credit card customer they can expect to see many more initiatives which offer similarly valuable benefits.”

The offer commences on September 3rd, and will apply until the end of January, 2008.

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