Credit Rating

Your credit rating is a numerical score that is based on your credit report and can be used to identify your credit worthiness. Your credit rating, or credit score, is calculated using the information supplied by a Credit Reference Agency on your credit report. As your credit report is updated on a regular basis it can affect your credit rating.

Your credit rating is designed to assist lenders in making their decision when you make an application for one of their products. If you have a poor credit rating this can affect your ability to obtain credit.

How your credit rating is perceived differs from lender to lender, and may also vary between different products offered by the same lender. Different lenders take different factors into consideration when assessing your credit worthiness, such as the details you provide in your application for credit. Therefore, although one lender may decide to accept your application, another lender using the same information provided to them, may choose to decline your application.

If you have CCJs, Defaults, Arrears, Bankruptcy, or some other indiscretion in your past, then you may be aware that you have a bad credit history. If however, you do not know why you have difficulty in obtaining credit, then it may be necessary for you to gain access to your credit report which will give you insight into why this may be.

As your credit rating is a numerical score based on your credit report, it is possible to increase your credit rating, as a higher score can suggest that you may find it easier to acquire credit.

You can gain access to your credit report by contacting any one of the three main Credit Reference Agencies listed below;

Experian / Equifax / Call Credit

Or by clicking here How to get your credit report

Credit Reference Agencies calculate your credit rating using information from your credit report. This includes the following;

• The total value of outstanding balances on any active accounts
• How many accounts you actually have with an outstanding balance
• Any late payments, missed payments, or arrears
• The number of accounts opened recently
• AND The number of applications for credit that you have made recently

To improve your credit rating you should reduce the number of applications for credit that you make. If it can be seen that you have made several applications for credit in a short space of time it can give the impression that you are in dire need of credit, consequently lending to you could be a risk.

You should always try to make your repayments to current creditors on time. If you are in arrears with any creditors you should quickly try to bring your account up to date. If you have accounts you no longer use it could help to close these accounts as this will then show as having been settled on your credit report.

Last but not least, it can also dramatically improve your credit rating if you are registered on the Electoral Register.