exactly How lenders assess your credit history

exactly How lenders assess your credit history

What exactly is a credit history?

a credit rating is a speculative number provided with a credit guide agency, frequently within a selection of 300 to 850, which demonstrates (inside their viewpoint) the chances of you repaying credit, (for example. it really is your risk element). The score is dependent on your last six years’ personal credit score including re payment record, level of debt, amount of credit, sort of credit, level of new credit. In line with the agencies, the larger the rating, the much more likely you might be to be offered credit.

You can find three main agencies running when you look at the UK: Experian, Equifax and TransUnion, all of designed to use their formula that is own to your rating this means that you’ll do have more than one. And all sorts of the scores mean various things to various agencies and loan providers helping to make once you understand just what a score that is good problematic.

The agencies have a tendency to categorise the ratings as Excellent, Good, Fair, Poor and Bad but loan providers don’t just take these categories into account when creating a financing decision.

What’s a credit history?

If you’re 18 or higher, your credit report is a profile of one’s credit that is personal history the past six years. In includes informative data on mortgages, loans, overdrafts, credit and shop cards, cell phone contracts and often, resources. Continue reading