What is a Credit Score?
Find out and understand what's on your credit score - Online answers and secrets to overcoming credit score problems - View your Free Credit Score.
A credit score is a method used by UK mortgage and loan lenders to help them determine whether you qualify for finance. Before offering a loan, mortgage or credit card, an assessment of your credit worthiness is made by reviewing your credit score. Based on information in your credit file, which is provided by the leading UK credit reference agencies (Usually Experian or Equifax) a complex mathematical model is used to define your credit score.
The credit scores estimate the level of risk that you pose as a borrower and the lending decision is made based on this information. The higher the credit score, the lower risk you are considered.
What will effect your Credit Score?
Many different factors are used, but the main ones are:
Your Payment history - Late payments and defaults will lower your score.
Public records - Things like bankruptcies, IVA's and County Court judgments will lower your score.
Amount that you owe - Too much debt will lower your score, especially if you are up to or approaching your credit limit.
Length of credit history - The longer your credit history is the better.
To Many New accounts - Opening to many new accounts in a short time may lower your score.
The Number of Searches - Every finance application will leave a search record on your credit report. A large number of recent searches will lower your score.
To see your free instant credit score, Simply click on the link!
