ONLINE CREDIT RATING

Your 'score', or credit rating, is the method by which finance companies determine whether or not you represent a good risk. The high your score, the safer the risk, and the greater the likelihood of your application for a loan being successful. Your credit rating is a snapshot of your 'risk factor' and it will enable a lender to, at any given time, assess whether you are in a position to pay back the loan. Your credit rating is calculated using a mathematical formula to assimilate information about your financial history, comparing your financial report to patterns of past files; your points score determines your future risk level. Your score is influenced by a number of factors other than your financial history such as age, long term employment, inclusion on the Electoral Roll listings, how much you already owe, the types of loans you have taken out in the past and the length of your financial history. When the lender is satisfied with your credit rating score he will then consider your application for a loan.

There is a small possibility that you will not be able to be assimilated for a credit rating; if, for instance, you have not had an account open for at least six months, or have not had an account that has been updated in the last six months, it would not be possible to calculate a report. Also if you have a history of fraud documented on your file there can be no calculation. Your credit rating is very important for future loans and it is a good idea to protect it; you can do this, and even improve it, if you make sure to pay your bills on time and keep balances on store and other types of cards as low as possible. Also, only open new accounts when they are absolutely necessary. If you can keep your credit rating high you will be able to avoid debt management.

Credit rating scores provide an extremely useful guide to the risk undertaken by the credit companies based on report data. Debt consolidation loans usually require a high score. Obtaining a secured loans will be a more likely option if you have a bad payment history as the finance house at least has the recourse of having the property or other asset to use to recoup the debt. Unsecured loans would require a high score because it would represent a higher risk to the lender, and would probably attract higher interest rates.

Bestquote Money Supermarket
1 Chantry Court
Sovereign Way
Chester
Cheshire
CH1 4QA
01869 277023

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