News & Views - Savantor
You are here:

Mind the gap

Monday, 31 December 2012

My youngest son is starting to think about venturing into the property market only to find that his credit rating isn’t good enough. This is not because he has insufficient salary or a debt problem except that he has never been in debt of any sort therefore he has no record. So finally taking his Dad’s advice he has taken out a credit card as the quickest way to establish a record. He is not alone as 57% of UK adults are at risk of having an application for credit turned down by a mainstream lender according to a new report. The ‘Mind the Credit Gap‘ report commissioned by aqua credit cards suggests that even people with a good credit rating and earning more than £50,000 could have a credit application turned down. Since the financial crisis lenders have significantly tightened their lending criteria, to the extent that 69% of women and 82% of young people aged between 18 and 24 years are now likely to fail a credit check.

This report highlights the importance of building up a strong credit score as people risk being turned down by utility providers, mobile phone companies and Internet Service Providers if they fail to pass a credit check. Despite the importance of a strong credit score, 79% of people do not know what their credit score is, and more than half have no idea how to improve it.

Using a credit card is a useful way to establish a credit record if of course you pay it off each month. According to 59% of UK consumers will fund Christmas using credit cards which means some will run the risk of falling into longer term if the card balance isn’t cleared in the New Year. If this is the case then maybe one answer might be the new three-year balance transfer credit card with a set interest rate of 4.9% which has been launched by Barclaycard. It’s the cheapest card on offer of its kind and there is no balance transfer fee. Without wishing to blow Barclaycard’s trumpet this is actually an impressive offer and even beats the personal loan market where the cheapest rate across this term is 5.4%. No doubt there will be a few ‘fast followers’ of this move.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Acquirer Strategy and Operating Model

"Savantor brought an effective blend of European acquirer market expertise and transaction processing solution design. Their experts quickly forged strong working relationships with our team. We enjoyed working with them to create our future acquirer strategy."

Mikko Hyttinen, SVP - Lending Services - OP-Pohjola Group - Finland

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.