Soon a novel credit rating system would be unveiled with the aim of helping businesses recognize the unwanted customers. However, fears attached to it are that it might be misused by some lenders preying on people already struggling with debt.

Now, if in case someone wants to buy a new flat-screen TV but is short of money, there is always the choice of using credit. But, with the new system in place, a customer will first have to pass a check, and the rating system used for the past 10 years can be skewed against him.

According to John Roberts of Veda Advantage, "If you have a default on your credit file that say, happened five years ago and that that was for no other reason than you were unemployed or sick and couldn't pay a bill, it sits there as a default."

The new VedaScore Plus system brings forth the customer's credit history over the past five years to present a single score, making it easier for lenders to assess the customer.

Alasdair Thompson, of Employers & Manufacturers Association, said: "That's not necessarily a bad thing, because we don't want credit being advanced to people who cannot pay their debts."

It should be noted that credit files on 2.2 million people is held by Veda. A score ranging from -330 to 1000 will be commenced by Veda under the new system.

"Ninety percent of us will sit between 650 and a 1000. Anyone with a score of 700 or more will usually be a good credit risk."

Mr. Roberts adds: "If you get 100 or below the chances of you getting credit is probably pretty slim."