Bad Credit
What Is My Credit Rating?
Credit details will be passed to a credit reference agency (there are 3 main ones in the UK) these details both good and bad can be searched by lenders in order to make an informed decision as to whether they want to loan you money, give you a credit card or offer a mortgage. All lenders will use one or more of the agencies before accepting or declining your credit application.
The Credit reference agencies will rate you but your credit score is likely to vary from lender to lender as they all have their own unique methods of scoring your credit to meet their particular requirements. Bad credit does not always stop you from having your application accepted, and likewise good credit does not always guarantee it will be.
Whether applying for a credit card, mortgage, loan or any other type of credit, your application is likely to play a big part in determining whether you will be given credit or not. Ensure that details of any jobs, wages and financial commitments are accurate.
Your credit record will be built up from several sources of information.
- The electoral register. Many lenders prefer to see people with a fixed address.
- Details of accounts good and bad including missed or late payments, unpaid debts. This will include information from credit cards, loans, catalogues, mortgages, hire purchase etc.
- House repossessions.
- County Court Judgments (CCJ's).
- Bankruptcy Orders.
- Rejected loan applications.
- Credit searches made by lenders, including credit card applications, mortgages and loans. If there are too many of these then lenders may think you are overstretching yourself.