From December 2008, the credit card industry will enhance the data they currently share, to include ‘behavioural data’ on their customers’ accounts. The data shared is being extended in order to help to identify and assist, at an earlier stage, people who may be starting to experience financial difficulties. It will allow lenders to make more informed credit decisions through having a fuller picture of an individual’s ability to repay their debt and will play a significant part in allowing the industry to deliver on responsible lending commitments contained within the Banking Code, as revised in March. 

The additional data includes the amount of your last payment, and whether this was equivalent to the minimum requested payment; any changes to your credit limit; the extent to which you withdraw cash on your account and if you are signed up to any promotional deals. This last category is particularly important because it makes it possible for a lender to look to distinguish between someone only ever paying the minimum repayment (particularly across a number of credit cards) because they may be in financial difficulty, from someone who has the means to repay, but chooses not to pay more because of a deal they have obtained. This information can only be shared through credit reference agencies, and used by lenders for the purposes of responsible lending.

The initiative does not represent a new data sharing scheme, but it is an important enhancement to well established data sharing practices in the UK, which have evolved over the last 20 years. This additional data complements the type of information currently shared - and which features on your credit report - such as your account balance, your credit limit and whether you are up-to-date with your payments.

APACS has created a fact guide on your credit report, which can be downloaded here: http://www.apacs.org.uk/resources_publications/documents/Yourcreditrecord-November2008.pdf