Credit Scoring

Credit ratings don't exist.

There is no universal credit rating, no one-off judgement of your creditworthiness and there is no such thing as a CREDIT BLACKLIST.

Credit scoring:

Most lenders use credit scoring to assess whether credit should be offered. Points are awarded for such things as occupation, length of service, salary, marital status, and length of time at an address and area of residence.

Information from a credit reference agency may also be used by the lender when credit scoring. A client's application will be accepted or refused depending on the number of points awarded.

Different lenders use different scoring systems and therefore rejection by one lender does not mean rejection by all lenders.

Three sources of information are used to determine your score:

The application form:

More important than many people assume, it's often the primary source of information as lenders obtain details of your salary, family size, reason for the loan and whether you're a homeowner.

Past dealings with the company:

Where it's allowed (complicated data protection rules govern it) companies use any previous dealings they have had with you to help assess your behaviour

When credit ratings do exist!:

Some lenders do utilise a 'credit rating' prepared by one of the credit reference agencies as part of their credit scoring process. This is used in conjunction with their own application form data to build their final credit score on any individual applying for credit.

Remember every lender scores you differently.

If you need further assistance contact our Advice & Support Centre.