Asda pays for credit card checks
January 9th, 2006
Asda may pay for you to check your credit score
Asda is going to pay the £2 fee for rejected credit card applicants who want to check their credit rating.
The supermarket will also supply an application form from the Experian credit agency and a leaflet explaining the rating.
Asda launched its credit card in 2004 with customers signing up either online or in store.
The credit rating records bad debts and is the main tool for rejecting or accepting applicants for new cards.
Among the events that contribute to a bad credit score are bankruptcy, County Court judgements, mortgage or rent arrears, and defaults on loans.
The size and frequency of any defaults helps the potential lender decide if the person in question is likely to default on any further loans.
Credit score
Anyone can find out for themselves what their credit rating is.
They pay £2 to Experian, or rival agencies such as Equifax or Callcredit, and receive a Statutory Credit report.
This can be done regardless of whether the person is applying, or has ever applied, for a credit card.
The basic report can be difficult to decipher so Asda will supply an explanatory leaflet to be read alongside Experian’s own brochure.
“Credit reports are very difficult to understand and although customers receive them free of charge via the Asda pack, this is only half the job,” said Asda’s director of financial services, Gev Lynott.
“They also need to understand the report’s content and know how to mend their record if it is incorrect, which our pack also helps them to do.”
Asda is owned by US supermarket giant Wal-Mart, they also provide:
Entry Filed under: Credit Cards, Finance Info
Trackback this post