Posts Tagged ‘Credit repair UK’

UK – How the Electoral Roll Affects Your Credit Rating

If you live in the UK it is important to your credit to be listed on the electoral roll. Learn how it can effect your credit report and score.

Are you on the electoral roll? You may not want to vote – but do you want to borrow money? If so, you need to be registered on the electoral roll, as it will affect your credit rating.

Lenders and credit reference agencies use the electoral roll as one of their main sources of information. It’s one of the ways they check that you are who you say you are, and live where you tell them you live. So if you’re not on the electoral roll, that looks fishy – and that could lead to your being refused credit.

Equally, if you’re not on the electoral roll, this might prevent the lender from being able to match you up with your credit file at a credit reference agency. When banks and building societies are approached for a loan, the first thing they do is try to get your file from one of the credit reference agencies, like Experian or Equifax. If they can’t find it, that means there’s no information about you at all – and lenders faced with a complete blank will usually decide not to lend.

Being on the electoral roll is crucial to most credit scoring systems. If you’re not registered at your current address on the roll, there’s a chance your credit score will be lowered. A lower credit score may mean you’re refused credit. Or, even if you are granted the credit you want, you may have to pay a higher interest rate than you would otherwise. That’s because most lenders now use risk-based analysis to decide interest rates, rather than giving everyone the same rate. A lower credit score means you’ll pay a higher rate of interest.

You might be able to borrow from the bank with which you have a current account, since this bank does have information about you. If you have managed your current account responsibly, the bank may feel confident enough to lend to you. But you will not be able to shop around for a better rate. And if you’re with one of the High Street banks, it’s likely that you will not be getting the best rate on the market – a real waste if apart from not being on the electoral roll, your credit record is otherwise good.

Registering for the electoral roll

The main registration deadline for the electoral roll is in October each year, so if you moved just after the deadline, you may not be on the roll in your new home. But in 2001, the law changed. Although councils still try to get most of the registrations done in October, they now update the register on a continuous basis. That means you’re not going to lose the right to vote for a year if you move in November.

You need to contact the local council and ask to be sent a registration form – the only requirement is that you are an EU citizen (not just Brits can apply) and over 18. Once you’ve applied, your details should be on the register within 28 days, since councils update the register every month. The credit reference agencies generally get monthly updates from the councils.

Protecting your privacy

If you are concerned about your privacy for any reason, you can ask for your name to be left off the edited register, which is the version available to marketing companies and the public. Credit reference agencies can still see the full version – and so can any finance company that uses the agencies to vet your application for a loan, credit card or mortgage.

Not eligible for the roll

If you’re not eligible to vote, because you are a citizen of a non-EU country living in the UK, you can still help your chances by asking the credit reference agencies to add a ‘notice of correction’ to your file. This should explain why you’re not registered to vote, and say where you live and how long you have lived there. Any finance company that searches your records will see this notice, and can take it into account.

That’s all simple enough. Yet it’s estimated that 1.6 million people who do have the right to vote are not on the electoral roll. That’s 1.6 million people who can’t get credit – or are paying too much for the credit they have. Just make sure you don’t join them.

Credit Score

Technorati Tags: Credit Rating UK, Credit repair UK