What Is Your Credit Score?

September 21, 2022

Every adult in the UK will build up a credit score over time, which is used to tell financial creditors and lenders what they need to know about your reliability when it comes to repaying money. 

Also known as your credit rating, this score is based on how well you’ve managed your money in the past… and the higher it is, the more likely it is that you’ll be accepted for credit and be able to take advantage of the best rates. 

A poor credit score can have a big impact on the rest of your life and may hinder you from gaining access to credit cards, loans and mortgages, car finance, mobile phone contracts, retail credit and insurance instalment plans. 

Whenever you apply for credit, whether that’s a mortgage, loan, credit card or something else, your score will be calculated. How it’s worked out will depend on where you’re applying to, as different firms have different ways of calculating the score, using different information. 

You can lose points if your report suggests that you have a history of managing credit irresponsibly, such as late payments in the past or even defaults. However, you can improve your credit score and gain points if you pay on time and ensure that you’re on the electoral roll. 

It’s important to remember that your credit score isn’t cemented in stone and it changes all the time, going up and down on a regular basis. If you do have a poor score at the moment, remember that you can change this by being more financially responsible. 

There are lots of ways in which you can go about improving your score, whether that’s limiting requests for new credit, getting on top of bill payments, considering debt consolidation or even use credit monitoring to help you keep on top of the situation. 

Looking for mortgage brokers for defaults at the moment? Get in touch with us today. 

Your home may be repossessed if you do not keep up with your mortgage repayments. 

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