Credit Scoring


A credit score is a tool used by lenders to help determine whether you qualify for a particular credit card, loan, mortgage or service.

Using the information on your credit report and any additional information you supplied as part of your application, lenders use a mathematical model to calculate a score that represents your credit history. This helps to indicate what kind of borrower you are, and how likely it is that you will manage your repayments

Higher score, lower risk?

Throughout your life, your credit score will play a key role in the financial products you take out. For example, when applying for a credit card or mortgage, it will determine whether your application is accepted and what interest rate you end up paying.

People with a higher score are often seen as lower risk, which means lenders are more likely to give them credit.

It’s worth remembering that every lender follows a different policy for credit scoring. So, if you don’t meet the criteria of one lender, you may still be able to get credit from someone else. However it’s important if you are refused credit to find out why you were turned down before making another application. You should also be aware that too many credit searches in a short time period may be viewed negatively by lenders.

What factors affect your credit score?

Your credit score is based on your credit report. Various different factors on your credit report can cause your credit score to change, including:

  • Information on your credit report such as how much of your available credit you’re using and your total debts
  • Your history of credit account payments
  • Credit searches (when a credit application is made)
  • Public records (electoral roll and county court judgments (CCJs))

Simple steps to help manage your credit score

  • Review your credit report and score regularly to ensure the information is correct
  • Ensure you don’t miss any payments
  • Close any unused credit accounts, as having a large overall credit limit may be viewed negatively by lenders
  • Register on the electoral roll

Sign up to a FREE service like or for instant access to your report and see what the lenders can see about you!

Don't worry if you have a low or a poor score, if you refer to my previous blog entitled Hints and Tips, there is some useful information there about how to improve your rating. There are even lenders that don't credit score, they just credit check so these can be useful options to pursue