What is a credit status? A credit rating is where an independent party are to produce an accurate and standardised assessment of credit risk i.e looking at the ability of an individual to meet financial obligations on a timely basis. Credit is where you are borrowing money that you promise to pay back within a specified period of time. Lenders use this score information to decide whether they offer you credit.
Having a credit status has a huge impact on your life and day to day living. It can impact on buying clothing, furniture, food, utilities such as gas/electric/tv/landline telephone/insurance/homes/cars/bank accounts and overdrafts/mobile phone. A credit status can influence a decision as to what rate is offered, an individual may not qualify for 0% and attract a higher rate.
There are 3 main credit reporting companies that financial institutions use. They are Experian, Equifax and CallCredit. The agencies rate your creditworthiness by keeping tracks of your bills, debts and repayments. Having this system helps people get quick and easy access to credit, having accurate data held about them and for lenders to be able to make responsible lending decisions.
How is my credit status determined? The 3 main credit agencies hold the following information:
? Electoral roll
? Court records (any ccj and bankruptcies)
? Other credit searches
? Addresses
? Linked data
? Fraud data
Late payments and/or defaults can adversely affect your credit score. High utilisation of credit cards, reaching max credit limits and overstretching your finances may suggest to lenders that you are heavily reliant on credit and therefore a higher risk. High number of searches suggest you are 'credit hungry' and multiple applications for loans indicate your debt burden is likely to be increased.
There are a number of ways to improve your credit score, here are a few:
? Get on the electoral roll
? Avoid a large number of credit searches at one time
? Build a good credit history and repair past problems
? Keep up payments and never be late
? Try and not financially link yourself with a partner who has a poor credit rating
? Try to use companies that offer a quotation search rather than credit search
? Home and employment stability is good
? Check addresses on all active accounts
? Deal with defaults on your file
? Cancel unused credit cards, debts and accounts
? Use any savings to pay debts
Having a credit status is important and having a good credit score can set you up for many perks and low interest loans and offers. The extra points will end up saving money in interest charges over time and can also give you more negotiating power.
Having a credit status has a huge impact on your life and day to day living. It can impact on buying clothing, furniture, food, utilities such as gas/electric/tv/landline telephone/insurance/homes/cars/bank accounts and overdrafts/mobile phone. A credit status can influence a decision as to what rate is offered, an individual may not qualify for 0% and attract a higher rate.
There are 3 main credit reporting companies that financial institutions use. They are Experian, Equifax and CallCredit. The agencies rate your creditworthiness by keeping tracks of your bills, debts and repayments. Having this system helps people get quick and easy access to credit, having accurate data held about them and for lenders to be able to make responsible lending decisions.
How is my credit status determined? The 3 main credit agencies hold the following information:
? Electoral roll
? Court records (any ccj and bankruptcies)
? Other credit searches
? Addresses
? Linked data
? Fraud data
Late payments and/or defaults can adversely affect your credit score. High utilisation of credit cards, reaching max credit limits and overstretching your finances may suggest to lenders that you are heavily reliant on credit and therefore a higher risk. High number of searches suggest you are 'credit hungry' and multiple applications for loans indicate your debt burden is likely to be increased.
There are a number of ways to improve your credit score, here are a few:
? Get on the electoral roll
? Avoid a large number of credit searches at one time
? Build a good credit history and repair past problems
? Keep up payments and never be late
? Try and not financially link yourself with a partner who has a poor credit rating
? Try to use companies that offer a quotation search rather than credit search
? Home and employment stability is good
? Check addresses on all active accounts
? Deal with defaults on your file
? Cancel unused credit cards, debts and accounts
? Use any savings to pay debts
Having a credit status is important and having a good credit score can set you up for many perks and low interest loans and offers. The extra points will end up saving money in interest charges over time and can also give you more negotiating power.