Your credit score is:
- A three-digit number calculated by a credit reference agency- This helps lenders decide whether to offer you credit.
- A measure of risk to the lender - The higher your score, the better you’re seen to have managed your debt in the past. This means you’re more likely to be considered low risk and therefore offered credit (and at a better interest rate). For more information on understanding your credit score, check out our FAQ
Your credit score is based on the information on your credit report, including:
- Information about you- This includes your full name, current address and any addresses you’ve lived at in the last 6 years. These details will stay on your credit report for around 6 years.
- Financial associations- People you share a joint credit account with or have made a joint credit application with. Any joint account/application information you have with your financial connections, may affect your credit report and score.
- Electoral roll- Being on the electoral roll (being registered to vote at your address) can help to verify your identity with lenders.
- Public information- Any bankruptcies, County Court Judgments (CCJs) and IVAs (Individual Voluntary Arrangements) can be found in this section.
- Credit account information- This includes your account balances, how much you owe, whether you’ve paid on time and the age of your accounts.
- ‘Credit application’ searches- These ‘hard’ searches will show on your report when a lender performs a check on your credit report to decide whether to offer credit to you or not. Unlike soft searches, hard searches are visible to anyone who looks at your report.
- Any fraudulent activity- Fraud warnings can be placed on your report to protect you by lenders who have been informed of any fraudulent activity in your name.