Wednesday 26th March 2008
Credit report provider Equifax warns that lying in order to access credit can "come back to haunt a consumer".
The suggestion follows the revelation by UK fraud prevention service Cifas that an increasing number of people have been found to be lying in an attempt to disguise a poor credit rating.
But Equifax points out that a responsible lender will always check the individuals credit report, rather than relying on the information provided on application forms.
External affairs director Neil Munroe asserts that "honesty really is the best policy" if Britons are to avoid being found out.
"If a lender felt the information provided could be deemed as fraud and decided to prosecute, this would show on an individuals credit file," he notes.
Mr Munroe adds that, even if no prosecution occurred, the application would be likely to be rejected immediately.
This in itself can reflect badly should it appear on a credit report during a future application for credit, he purports.
Figures from Cifas reveal that lying on forms is a significant problem, with about two-thirds of all such fraud being carried out in an attempt to disguise a poor credit rating.
Equifax offers advice for those looking to take simple steps to improve their chances of being able to get a credit card in the future.
This includes procedures such as closing old credit accounts, as lenders may be likely to assess the total amount already available to the individual before providing any additional funds.
Recent guidance from the organisation suggested that daily checks of credit records could become "de facto" as savvy consumers look to prevent identity fraud from being committed using their details.
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