Credit Scoring.

Credit rating is carried out by financial product providers who require to find out how much of a risk is related to the money they lend. Every time you apply for a loan or credit, you will be credit scored.

Credit scoring has the ability to calculate the future conduct of a loan based on past performance of those with a similar credit profile. Each detail on your application is given a score, and then they are all added together. The total score is a measure of the risk associated with your application for a loan/credit.

If you are not sure of your credit score, or if you have had no problems in the past with credit but find yourself being refused for credit, you can obtain a copy of your report from credit reference agencies, such as Equifax or Experian.

Many different details can affect your credit rating. For example, your employment history, accommodation history, age, any loans you’ve had in the past, if you made late payments or missed payments altogether. This builds up a profile of you and this in turn affects your credit rating.