loans, credit cards, mortgages, savings, current accounts

Guide to credit ratings

What is a credit rating?

A credit rating is a score that you are allocated which depicts your ability to repay a loan. Lenders will not tell you what information goes into your credit score so they can prevent fraud.

Why is a credit rating important?

Your credit rating is a key part determinining if a lender will lend you money and in many cases at what rate.

For example you a person with a good credit rating may pay several percent less for a personal loan than a customer with a less favuorable rating

Factors affecting your credit rating

  • your earnings and job stablility e.g. you are paid monthly, and have been employed for a while and in a skilled job will help.
  • Your outgoings - how much you spend each month and how much you have left to replay the loan
  • Your past credit history - if you have had loans in the past and repaid them it will help, if you have defaulted or were late making payments it can have a negative affect
  • Your postcode - this plays a big part. If your area is considered a wealthy and credit worthy area it will help you get a loan.
  • Court proceedings and criminal record - if you have a criminal record, specially for fraud, this is a big no no for lenders. A county court judgement (court action for not paying your debts) this will have a negative impact on your credit rating .


Home Finance
Mortgage guide
» Secured Loans
» Mortgage Directory
» Mortgage Life Cover
» Income Protection
» Home Insurance
» Homes & DIY
» Shopping deals

Credit cards &
Personal borrowing

» Credit card deals
» Credit card guide
» Personal Loans

Car finance
» Car Finance options
» Vehicle warranties
» Car Insurance
» Car finance deals
» Car deals

Credit info
» Credit history
» Poor credit history

© No part of this site can be reproduced without our written consent. This site is part of the network of UK sites which include: