In the UK there are three main credit reference agencies, Callcredit, Equifax and Experian. These agencies gather information about us which is then used by credit lenders to assist them in their decision as to whether to accept our applications for credit.
What is your Credit Score?
Your credit score is a numerical value of three digits and is calculated based on your credit history and credit report. The higher your score the more likely you are to get favourable offers from credit lenders, be warned in advance, having a good credit score doesn’t automatically mean that you will be accepted for credit as lenders acceptance criteria differs from lender to lender.
Why is it important?
It seems no matter what we do in our daily lives it is someway going to be affected by our credit score, applying for a mortgage, credit card or loan are all things that we should know about, but it also affects your application for mobile phone contracts or looking to renew your home or car insurance.
What can impact on your credit score?
- not registering to vote
- never taking out credit
- missing repayments
- applying for too many credit cards
- Having County Court Judgments entered against you
Up until recently I was paying around £15 per month to Experian to obtain my credit score and credit report, through CreditExpert, I was paying this religiously without any thought for whether I was getting value for money. This service provides tips on how to improve your credit score, web monitoring to protect your online identity and most importantly for me anyway, unlimited access to my credit score.
When I first started paying Experian for this service Experian were not offering a free service, that was until recently and now they offer Experian CreditMatcher, with this service you get free access to your credit score forever, as the name suggests trough this service Experian Credit Matcher will match you to the best Credit Cards, loans and mortgages.
Clearscore is the free service provided by Equifax
Noodle is the free service provided by Callcredit
You can get more information about your credit report from the Money Advice Service