Barclaycard customers to be given access to credit scores

http://www.theguardian.com/money/2015/nov/20/barclaycard-customers-credit-scores-experian

Version 0 of 1.

Barclaycard is offering its 10.5 million UK customers free access to their credit score in a move the company said will give people greater control over their finances.

The credit card arm of Barclays said it was the first financial services brand in the UK to offer such a facility to all its customers. The move coincided with a separate decision by Tesco Bank to offer holders of one of its products, the Foundation credit card, a free copy of their credit report.

Barclaycard has linked up with Experian, one of the UK’s three credit reference agencies, and said that from Friday customers would have free and regular online access to their credit score. This is a number between 0 and 999 that is a snapshot of an individual’s current credit status, and which is based on the information in their credit report held by the agency. The higher the number, the lower the perceived risk.

Many experts advise people to keep a close eye on their credit score, particularly before applying for products such as a mortgage or a loan, because it can help minimise the damage that any past defaults or other problems, mistakes or fraudulent activity can have on their creditworthiness.

Everyone should take time to manage and understand their credit score

A Barclaycard spokesman said customers would not be getting their full Experian credit report at this stage. However, in addition to their score there will be commentary tailored to people’s positions, plus hints and tips designed to help them understand, improve or maintain their score.

Experian credit scores can be broken down into five categories: very poor (0-560), poor (561-720), fair (721-880), good (881-960) and excellent (961-999).

Customers will be able to access their score through their online account and, from early next year, via the Barclaycard mobile app. The company said its research showed that only 26% of people in the UK knew what their credit score was, and fewer than one in four (39%) had checked it in the past.

Manoj Piplani, Barclaycard UK’s managing director, said: “Customers have told us they recognise the importance of their credit score, but for a variety of reasons just one in 10 check it regularly … Everyone should take time to manage and understand their credit score – it’s not only an important deciding factor on whether you can get a mortgage, loan or credit card, but can affect your access to a much wider range of products and services including mobile phone contracts, monthly car insurance, bank accounts and more.”