Experian dispels "myth" of credit reports

June 14, 2006

The commonly held view that one could be refused a loan or credit card owing to their name being on a credit 'blacklist' has been dismissed by credit agency Experian as "a myth".

A new guide called 'Credit report myths' has been published by the company and claims to explain the truth behind common misconceptions regarding credit checking.

There are five main fallacies which the publication sets out to debunk, the first being the concept of blacklists, which Experian says simply do not exist.

The company also insists that the idea that previous occupants of your home can affect your creditworthiness is a falsehood, as is the view that negative information on your credit report can be removed for a fee.

Credit reports do not show when credit has been refused, according to Experian, and negative information about an individual does not always affect the rest of his or her household, as many people believe.

Jill Stevens, director of consumer affairs at Experian, said: "There are a number of myths about the credit reference process that have been perpetuated over the years, leaving many customers baffled.

"Many of these myths have no basis in fact. It is important that everyone understands how credit works so they can have confidence that they system really does work for them."