KkIf you apply for a mortgage, loan, or other form of credit today, the credit industry will automatically review your personal credit history. for everything, because in a split second, the lender’s computers will be locked in your credit file in the hands of one of the three major credit bureaus; Experian, Callcredit or Equifax and you will be amazed what they know about your finances!
For many years, banks, mortgage lenders, and other lenders have provided credit bureaus about your finances. They know all of the loan applications you have submitted, the times you were late or failed to pay a loan or credit card, the balances of your loans and credit cards, and if you only pay the minimum per month, even your credit limits! The agencies have also amassed a lot of other information about you from public records, the electoral roll, and the legal history register, which records all of the district court’s judgments. Their computers then evaluate all this information statistically and evaluate your application. Therefore, in this context, the banking industry argues that the more information they have about you, the more accurately lenders can make loans. Decisions.
However, there is a notable loophole in this abundance of information: despite statements made to the government, credit bureaus are not provided with any information about student loans and their payment history. Taxpayer, not a trading company.
Prior to September 1998, graduates repaid their student loans through mortgage direct debits, which were withdrawn once the graduate earned more than 15,000. of around 2,750 per graduate.
After September 1998 the student loan collection system changed.Nowadays, employers deduct reimbursements directly from wages along with social security and income tax. This method is much more efficient and avoids the possibility of bad debts.
The banking industry argues that it needs the information on student loans as it can put a significant strain on graduates’ finances, especially after the introduction of additional fees, resulting in much higher average student loans. 9% income quota for graduates over 15,000 and can represent a significant loss of your monthly income.
In order to be able to comprehensively assess the financial situation of graduates, the banking industry therefore needs information about student loans. The association’s consumer credit advisory service agrees. A spokesman said: Do you know if a young person has a student loan and if he is paying back, it is useful.
However, despite pressure to share your information, the Department of Education and Skills remains firm in its decision to deny the Student Loan Company permission to share information in the commercial sector.
The Citizens Advice Bureau also wants to change this decision, arguing that lenders need information about student loans to ensure that graduates do not get so high in debt that they cannot keep up with their repayments.
But at least for now the situation remains. The banking industry cannot call up a history of student loans.