Your Affordability Score is based on the last five months' data from your linked bank accounts. We work out your score using factors we call 'Insights' and give you easy-to-action tips to help you improve it. Here are the 'Insights' that can affect your score:
Keeping your bank accounts linked - this gives a complete picture of your income and spending. It also gives lenders confidence you'll be able to pay what you owe.
Avoiding debt collector fees - paying off your credit accounts on time and in full shows that you're reliable.
Keeping your short-term debt low - lenders want to see that you can keep up with your short-term debts (for example, credit cards) and avoid higher interest fees. If you make low repayments each month, lenders are less likely to accept you for new credit.
Limiting your cash transactions - when you use cash or cheques, lenders can’t see what you’re spending your money on. Lenders need to understand your monthly costs so they know you’ll be able to keep up with payments.
Keeping track of your gambling spending - lenders want to see that you don't spend much of your income on gambling.
Having some money left at the end of the month - lenders want to see that you've got money left across all your accounts once you’ve paid for your essentials. This gives them the confidence that you’ll be able to pay them back.
If you want to get advice on how to manage your debts you can contact StepChange.