Banks and credit card companies use a variety of information to give you a credit score. A credit score is what determines whether they will lend to you and, if so on what terms.
A Credit score can be based on a series of information such as:
What you provide on the application form
What the lender might already have about you, from previous accounts you have had with them or any previous applications, and
A credit report at one or more credit reference agencies b e.g.- Experian
It may boost your chances of getting a higher credit score if you:
Are on the electoral register
Own your own home and/or have lived at the same address for at least a year
Are not connected financially, through your mortgage or a joint bank account, to anyone with a bad credit history
Have a good credit history by repaying credit agreements on time, and other bills such as gas and electricity bills and mobile phone contracts.
Have evidence of stability b for example youbre employed rather than self-employed, youbve worked for the same company for a long time and had the same bank account for a while.
If you have a poor credit score, you may be charged higher rates of interest, or may only be offered a smaller credit limit. Alternatively, you may not be offered any credit at all. Lenders donbt have to give you the interest rate they are advertising or that you see in best buy tables on comparison websites.
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