What is a credit rating?
A credit rating is a score that you
are allocated which depicts your ability to repay a
loan. Lenders will not tell you what information goes
into your credit score so they can prevent fraud. However
the following are likley to be included:
- your earnings and job stablility
e.g. you are paid monthly, and have been employed
for a while and in a skilled job will help.
- Your outgoings - how much you spend
each month and how much you have left to replay the
- Your past credit history - if you
have had loans in the past and repaid them it will
help, if you have defaulted or were late making payments
it can have a negative affect
- Your postcode - this plays a big
part. If your area is considered a wealthy and credit
worthy area it will help you get a loan.
- Court proceedings and criminal record
- if you have a criminal record, specially for fraud,
this is a big no no for lenders. A county court judgement
(court action for not paying your debts) this will
have a negative impact on your credit rating .
Information aboout an adverse credit rating