How is credit rating calculated?
Whenever you try to get credit such as a loan, your credit score could be checked using information held by a credit reference agency.
Your credit score is a points system based on your known credit history. If you have a low credit score, you will find it hard to get credit.
How do you end up with a poor credit history and a bad credit score?
Things that affect your score include:
- County Court Judgements
- Missed mortgages payments
- Missed loans payments
- Not being on the electoral roll
- Having no credit history – people want to know you’ve paid debts in the past
- Not being truthful on credit applications
How do I find out if my credit record is poor?
Contact the credit reference agency – they are legally obliged to reply to you within seven days. If their information is incorrect, you can ask to have it removed.
If you’re suffering unfairly from a bad credit record, check your credit rating, for a limited period get a free credit report from Experian. Simply fill out your details and click “SUBMIT”.
