GDPR summarised - BingoLoans.co.uk

The Data protection Act has been changed recently and these changes affect you greatly. These amendments have changed the dynamics of data protection considerably, and have changed everything from your online data’s protection to who can store your information and for how long.

These changes also affect the more complicated and less talked about aspects of your life, such as short-term loans and your credit score. To further understand the effects of these changes on your credit score and loan feasibility, let’s first discuss the General Data Protection Regulation, also known as the GDPR.

So, what is GDPR?

To make things easier to understand, GDPR stands for General Data Protection Regulation, which is a legal act that serves as the lawful framework for data handling and usage in the EU. The GDPR ensures that the data being handled, used, and stored by organizations, institutes, and individuals is not used unlawfully.

This act is applicable for all data types including personal data, company data, and consumer information.  The GDPR is meant to help the people have more control over their private information and ensure that it is being handled legally and transparently.

How does it influence the debtor?

The changes to the UK’s General Data Protection Regulation do not significantly affect the credit seekers other than in terms of application processing time.

Loan application for short-term and payday loans for bad credit scoring candidates may take longer to be processed because of these changes, resulting in delayed loan payments.

Candidates looking to apply for payday loans should apply well before time in order to have ample time for their application processing and get their loans granted and paid timely. The GDPR does not affect debtors otherwise.

How does it affect Credit Ratings?

Now, you’re probably wondering how the GDPR actually affects credit ratings. Access to credit scores is largely dependent on data sharing which has been limited with the introduction of the General Data Protection Regulation.

The GDPR makes data accessing and sharing very difficult, limiting the lenders to candidates’ credit history and other data. This, may consequently, result in the candidate’s applications taking longer to process and even then, not all data is collected making the calculation more challenging.

The changes and limitations proposed with the General Data Protection Regulation can reduce the number of loans granted, increase application processing times and also affect lenders due to the lack of financial data made available.

The lack of available financial data can result in many ineligible candidates with bad credit getting short-term loans.

Credit agencies will have to be more transparent with their processes and contracts. Fair processing notices will need to be issued and shared with consumers.

Additionally, agencies will have to ensure that all consumers and clients are aware of the fact that their personal information, financial histories, and other associated data will be collected, shared, and stored.