Press Release

GOOD CREDIT SCORES COULD BE CRUCIAL TO GETTING A GREAT DEAL IN THE CAR SCRAPPAGE SCHEME

www.equifax.co.uk

London, May 20th 2009 - Leading instant online credit information provider, Equifax, is highlighting that motorists who want to make the most of the Government's Car Scrappage Scheme need to make sure they have a good credit score if they need finance for their new car.

"The new Car Scrappage Scheme launched this week certainly appears to be getting car showrooms buzzing. But it's crucial that motorists who need a good finance deal to fund their new car purchase, realise they need to have a good credit rating too", confirmed Neil Munroe, External Affairs Director, Equifax.

"Whilst it is a fairly sweeping generalisation, a good proportion of those who own cars that are 10 years or older are likely to be in the lower earning sectors of the consumer marketplace. And the big question will be whether their earnings and existing financial commitments will give lenders the confidence to extend credit for their new car purchase."

Lenders make checks with credit reference agencies to see whether an applicant has kept up to date on repaying their credit. Lenders also use a "credit scoring" system to decide whether or not to lend to consumers - and in some instances - at what price. Basically therefore, the better an individual's credit score, the better the rate they will get, helping them take advantage of the best deals.

Equifax has created a Credit Score test to help consumers work out how they might score when next applying for credit. The Equifax credit score works by giving an individual points based on how they compare with people who pay their credit on time. The more favourably someone compares to the national average, the better their score. Consumers will also be told how likely it is that they will be able to get a loan based on their score. And a 'traffic light' signal helps consumers identify information that might be damaging their score.

"Now more than ever, it's vital to ensure that payments for existing credit agreements are kept up to date so that credit scores are as good as possible when new applications are made", continued Neil Munroe. "And we think it's really worthwhile car buyers obtaining a copy of their credit rating before they apply for finance as part of the car scrappage scheme. That way they can make sure their credit rating is looking its best before they apply for car finance. And the better their rating, the better finance or loan deal they should be able to negotiate."

The Equifax Credit RatingTM dispels the mystery of credit scores, which Equifax research has revealed remains one of the key concerns for consumers. What makes the Equifax Credit RatingTM so powerful is that it is based on all the credit information used by lenders when assessing applications, and it is available online instantly, providing consumers with a valuable insight into their credit rating.

To obtain your Equifax Credit Rating instantly online go to www.equifax.co.uk. The price is £14.95.

TOP TIPS TO IMPROVE YOUR CREDIT SCORE

1. Ensure you are registered on the Electoral Roll.

2. If possible make more than the minimum payment on credit agreements every month. You will benefit by paying back your debt quicker, paying less in interest and you will build a positive payment history.

3. If you have paid any County Court Judgments, make sure the settlement is recorded on your credit file. If not contact the court to get confirmation details and inform the credit reference agencies.

4. If you have been refused credit, obtain a copy of your credit rating. But DO NOT carry on applying elsewhere. Each search by a lender will leave "footprints" on your credit file, this may look like you are over-stretching yourself financially.

5. If your circumstances have changed then say so. You can place a Notice of Correction on your credit file explaining your financial situation, which a lender will review when accessing any credit applications you make. For example if you were made redundant or have recently divorced and have fallen behind on credit repayments.

6. Avoid carrying a balance that is more than 30% of your credit limit (creditors may view it as excessive debt and that you may not be able to keep up with repayments).

Questions	Yes	No	N/A
Are you registered to vote at your present address?	10	0
Do you have at least two active credit accounts? Such as a credit card, store card or loan.	10	0
Are all your credit account payments up to date?	15	0	0
Have you missed payments on your credit accounts in the last 2 years?	0	10	0
Do you have any Count Court Judgments or been declared bankrupt?	0	25
Have you ever defaulted on a credit agreement?	0	25
Have you applied for more than two items of credit in the last six months?	0	5
Scorecard
Excellent - Your score shows that you would be a strong candidate for credit	90-100
Good - Your score shows that you have a good chance of being granted credit	70-89
Fair - Your score shows you may have some problems obtaining credit	50-69
Poor - Your score shows you may have considerable difficulties in obtaining credit	0-49

ENDS

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: elinor@harrisonsadler.com