What Does Checking Your Credit Score Tell You

Banks and other lenders make use of a lot of information to decide whether to lend to you or not. The credit ratings are not universal. Each lender has its own wish list to define a perfect customer and there are no negative elements that would be considered ‘unforgivable’ by all. While one bank will boost your ability to borrow, another may limit it.


As they check your credit score, banks will know, besides your income, family size and property status,   also your data from the credit reference agency files. There will be data from electoral rolls, information about court judgements and bankruptcies, which will indicate debt problems. Also, record from other lenders who have dealt with you will be accessed. All your account data will be available, such as the transfers. If you’ve missed payments to the utility companies, this will be shown as well. British Gas, for example, provides full payment data, while E.on shares missed payments or defaults.


If you’ve had financial associations with other people, these will be known, too. In case of fraud, either committed by yourself or by someone who stole your identity, this will appear on file. There are several anti-fraud agencies that are often being simultaneously used by lenders and credit reference agencies, because errors can be frequent.


Make sure to check your credit regularly, correct any error that you notice and strive to improve your credit history, as companies scoring systems are never made public and you won’t know whether you will get rejected or approved.

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