A price comparison Internet company is now urging the government to formulate a better regulation of credit score ratings for consumers to encourage people to seek better credit card deals and maximize their financial resources.

Toby Van Der Meer, managing director of money at www.moneysupermarket.com, notes that cautious and wary consumers are not keen on getting even the best credit card offers, as their application could potentially impact their credit score rating in a negative manner.

Van Der Meer notes that the current credit rating system places consumers at such a disadvantageous position when they are shopping around for the best offers.

While newbies in the plastics would jump at the next opportunity to apply for a credit card, those who know better easily ignores a chance to get better interest rates and keep their existing cards instead. In some cases, the consumers would rather not maintain a credit card at all.

Each time a consumer applies for a credit card, it gets filed, documented and referenced upon for their credit score rating. This means that both credit card application approvals and rejections are kept on record. Naturally, some applicants who shop around get mostly approvals, and some others get mostly rejections. Whatever the case may be, these application records affect the credit score rating of the credit card applicants. Ultimately, it becomes a “no-win” scenario for the consumers, who are the prospective credit card applicants.

Consumers who want a clean and safe credit score rating would rather resist applying for a new credit card than risk tainting their credit score rating.

“Our research shows that many consumers don’t understand the impact shopping around has on their credit rating,” Van Der Meer stressed. “And those that do may be missing out on the best deals because they’re reluctant to make numerous applications in case it has a negative effect on their credit score.” In conclusion, Van Der Meer says, “(It’s) effectively a no-win situation at the moment.”

It is for this reason that the price comparison web site moneysupermarket.com has been lobbying the government to provide an improved system to regulate credit score ratings.

“We have asked the Treasury Select Committee to press for change in this market,” Van Der Meer announced. He added, “We need to see greater transparency and fairness in the consumer credit market, so consumers can shop around freely for products without any impact on their credit files.”

Writer: Arlene

Tags: application approvals, application records, best deals, best offers, consumers, credit card applicants, credit card application, credit card deals, credit rating, credit score, financial resources, interest rates, internet company, managing director, negative manner, newbies, plastics, price comparison, rejections, van der meer

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