Moneynet warns credit rating at risk when consumers switch current account

Written by Rachel Lane

As Barclays Bank turns uprepparttar current account heat withrepparttar 150532 launch this week of a new, features-laden current account, online financial data analysis company Moneynet ( ) warns consumers to look before they switch.

"Onrepparttar 150533 face of it,repparttar 150534 new current account offering from Barclays looks attractive,” said Moneynet Chief Executive Richard Brown.

“The bank has admitted it wants to poach customers from its competitors by rolling out a range of benefits that it claims are worth around £1,000 a year if you take advantage of them – but we feel borrowers should be very cautious when considering switching current accounts.

“Despite what lenders say, it is nothing like as straightforward as hopping from one credit card to another, and there is a real danger that account holders can jeopardise their all- important credit rating, as one ofrepparttar 150535 key questions asked by lenders as part of their credit scoring process is “how long have you held your current account?” – a short period of time with your bank could results in a reduced credit scoring.

"And there are one or two other issues withrepparttar 150536 Barclays offering:repparttar 150537 interest free overdraft facility andrepparttar 150538 interest free Barclaycard for ten months will probably appeal to people who want interest free borrowing. But with UK consumers now inrepparttar 150539 red torepparttar 150540 tune of around £1 trillion pounds, we feel concerned that lenders are inviting account holders to rack up yet more debt.

"If you do borrow money via this account,repparttar 150541 sensible option is to clearrepparttar 150542 debt withinrepparttar 150543 10 months’ time frame. And borrowers should also bear in mind that there are many products onrepparttar 150544 market offering interest free credit deals for at leastrepparttar 150545 same period asrepparttar 150546 Barclaycard proposition,” said Brown.

“We are likely to see a lot more accounts with bells and whistles such as this new offering from Barclays -repparttar 150547 current account market is worth billions torepparttar 150548 banks and is intensely competitive.

Home Loans – Identity Theft Protection Could Hurt Home Sales

Written by Charles Essmeier

Identity theft has been a hot topic inrepparttar news duringrepparttar 150531 last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravelrepparttar 150532 problems created when someone’s identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a “freeze” on their credit reports. Those inrepparttar 150533 real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.

The concept of freezing credit reports is a simple one. Every time someone applies for credit,repparttar 150534 lender contacts on ofrepparttar 150535 three main credit bureaus and requests a copy of his or her credit report, which containsrepparttar 150536 applicant’s FICO score. The score, a number ranging from 300 to 850, indicates how worthyrepparttar 150537 applicant is to qualify forrepparttar 150538 loan or credit. The new laws allow consumers to “freeze” their credit reports, effectively blocking any attempts by anyone to view his or her credit score. Ifrepparttar 150539 score can’t be viewed, then credit can’t be issued, thus protectingrepparttar 150540 consumer from fraudulent activity.

The process is a simple one, and can be initiated or canceled with

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