Loan borrowers defaulting due to unannounced home moves
Most detriments to individuals credit profiles could be easily avoided, provided that borrowers inform their creditors of changes in address, as and when they move.
According to a new study, sizeable numbers of people within the UK are damaging their credit records through the act of relocation whilst not informing loan providers as to where they have gone.
Simple payment mistakes such as this account for almost 1 in every 6 issued default, meaning that almost 15% of people could have avoided being slapped with the bad credit brush had they been more organised.
The study also indicates that people in higher education are particularly susceptible to this kind financial downfall, with some 25% of students completely forgetting to inform their loan and credit providers of changes in address, resulting in high numbers of graduates leaving university with a less than perfect credit profile.
One expert commented that failure to inform a credit provider of movements in home address, thus leading to the mismanagement of repayments is a silly mistake to make. One sure-fire way to ensure that you avoid such incidents is to have all of your mail redirected by the post office to your new home for a set period of time. This will then give borrowers the change to sift through their mail, and contact providers systematically to inform them of any move.
