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Credit reference agencies and lenders summarise the contents of your credit file into a mathematical formula called a credit score. Your credit score is a reflection of your creditworthiness that lenders use to predict whether you are a good, moderate or poor credit risk. Credit scoring has been proved repeatedly to be more reliable than human assessment in getting the decision right. So much so, that far more people are approved for credit using credit scoring than would be by human judgment.
Every lender has its own credit score card which they believe is the best, but in reality all are built on the same principles and produce similar results. We can show you your credit score based within a range of 0 -1000, where 0 is the worst and 1000 is the best. The average score achieved is 750. The scorecard ha s been specially developed to help UK consumers understand how credit scoring works.
We also provide you with a credit rating, based on a range of 1 to 5 stars, where 1 is the worst and 5 is the best, and 3 is average. This, together with the reasons given, will help you to understand what has influenced your score and your credit rating.
Your Credit Rating is a fairly broad measure and rarely changes unless your financial circumstances improve or decline significantly. Knowing your credit score can influence the type of lenders you approach, whether for business finance or personal credit, with greater confidence.